LLC

[Tyler Carpenter]

I went onto my secretary of state website and looked at forming an LLC and it was $600. Is this about normal? Are there any sites you have had that you would recommend to be better or cheaper?

[Nick J.]

Originally posted by Dave V.:

Originally posted by Nick Johnson:

My LLC has a Scorp election for taxing.

Nick,

Just curious - why did you select the s-corp option for taxing?

The tax savings are better I believe using an s-corp when large periodic sums of money come through your business. My Attorney/CPA explained to me a while back the differences between the 2 as far as taxation and asset protection. I recently read a book called 'lawyers are liars' and the author went into pretty decent details. To be completely honest as far as the details I'm not 100% clear, but could easily find out the exact differences. My Attorney/CPA has never failed me and he's good about not pushing 1 over the other and at the time I felt that was the better solution considering my business model was to wholesale out my short sales that would create periodic large sums deposited and I'm able to reduce the amount of income tax I have to pay with the s-corp election, I think it's a 1/3-1/3-1/3........1/3 = pay - income taxes = smaller check but less taxes paid.....1/3 = paid dividend and 1/3 is eaten up by expenses.......Now I can be a little off on those, there just from memory. If you'd like I can get more detailed answers if you give me till tomorrow to find out