Corp vs. LLC

[MAMalody]

Looks like I may be loosing a client. He has a notary business and is looking at incorporating or forming a LLC. I don't do corps. However, besides recommending he consult with an attorney for the legal aspects of liability protection, etc, I seem to remember seeing a chart at one time comparing various types of entities. I can't find it. Does anybody have source that I could copy or download and send to him. To be honest, I'm not sure he needs to incorporate. He is also in CA, so I believe there is a minimum annual fee of $800 or so.

Mike

[jainen]

>>I don't do corps<<

If he forms an LLC, he will probably continue to file the tax return as a sole proprietor. If he forms a corporation, he will get a K-1, a 1099-DIV, and/or a W-2 which you can handle in the normal way. Undoubtedly you can do his individual return for significantly less than he would be charged by the accountant doing the corporate return. Besides, the corporate return will probably be very simple and you can figure it out.

[Bart]

Looks like I may be loosing a client. He has a notary business and is looking at incorporating or forming a LLC. I don't do corps. However, besides recommending he consult with an attorney for the legal aspects of liability protection, etc, I seem to remember seeing a chart at one time comparing various types of entities. I can't find it. Does anybody have source that I could copy or download and send to him. To be honest, I'm not sure he needs to incorporate. He is also in CA, so I believe there is a minimum annual fee of $800 or so.

Mike

Mike

Try this:

http://www.mycorporation.com/comparison.html

I also have three sheets doing a comparison of entities if you want me to fax them to you.

[Lion EA]

Mike

Try this:

http://www.mycorporation.com/comparison.html

I also have three sheets doing a comparison of entities if you want me to fax them to you.

Mike: If you want to learn to prepare corporations, this would be your chance. It's a lot easier to start as one begins, especially one where you know the client and his business.

Bart: Would you please send me those three sheets, also? (I used to have a toll-free fax, sorry) 203-454-5795 or email is fine for me [email protected]

[MAMalody]

<<<Try this:

http://www.mycorporation.com/comparison.html

I also have three sheets doing a comparison of entities if you want me to fax them to you.>>>

Thanks for the link. I would like your info also, if possible. You may e-mail attach it to [email protected] or fax to 509-542-9354. I appreciate your help.

Jainen,

I like your thinking on the corp filing. I realized that I could potentially still do his individual tax return, however, my experience is most people have the corp preparer do their individual return also. I had not thought about doing the corp because I stay away from what I do not know. I have chosen in the past not to do parts, corps, estates, trusts, nps and to concentrate on individual and then I only do clergy and religious workers (and some of their family members). I will have to think about this again.

[Bart]

<<<Try this:

http://www.mycorporation.com/comparison.html

I also have three sheets doing a comparison of entities if you want me to fax them to you.>>>

Thanks for the link. I would like your info also, if possible. You may e-mail attach it to [email protected] or fax to 509-542-9354. I appreciate your help.

Mike and Lion

Sorry I have not responded yet with the additional information. I am trying to get this darn scanner to work.

[Lion EA]

Isn't technology challenging? <_<

[MAMalody]

I'm glad someone else has problems like I do. I find that a nerf hammer kept by my computer provides much solice.

[joanmcq]

>>I don't do corps<<

If he forms an LLC, he will probably continue to file the tax return as a sole proprietor. If he forms a corporation, he will get a K-1, a 1099-DIV, and/or a W-2 which you can handle in the normal way. Undoubtedly you can do his individual return for significantly less than he would be charged by the accountant doing the corporate return. Besides, the corporate return will probably be very simple and you can figure it out.

If he's in CA, a SMLLC will also have to file a 568 and pay the $800 (minimum) even though the income and expenses are reported on the Sch C.