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keudiven
07-26-2007, 04:02 PM
Greetings all, After years of desire I have finally decided to take the plunge and risk a new start up. I have a few questions ( well actually a million , but just these for now ). I am thinking of forming an LLC with myself and my wife as it's owners/members. In doing so, the business will be taxed at the federal level as if a partnership.

Question #1 : What would be the difference, tax wise, in choosing that option as opposed to having the business under only one of us and being taxed as a sole proprieter?

Question #2 : If I form the business now, but am not actually in opperation until the "08" season, can I claim any business expenses in preperation of opening against my own personal income? I was wondering this because an LLC is not taxed as a corporation but is filed on it's owners personal taxes.

Any and all help/advice will be very appreciated.

Keudiven

gregsalyers
07-26-2007, 04:04 PM
will refrain from giving advise, but I can tell you that my lawyer/accountant suggested S Corporation as a structure......best tax advantages becuase of dividends instead of salary

MindWerxKMG
07-26-2007, 05:05 PM
MindWerxKMG, Inc. owner/operator of Nightshade Manor was formed as a S-Corporation on recommendation of my accountant. You should speak to an accountant and/or laywer to find out what is the best option for your particular situation. With a S-corporation all profits/losses flow to your personal tax return.

KegRoller
07-27-2007, 08:51 AM
The real reason you want to create an LLC or S Corp is to protect yourself from lawsuits. As a sole proprietor… If anyone is hurt in your haunt (or other issues) they can come after you personally. They can take not only company assets, but your home/car/personal bank accounts. If you form an LLC or S Corp, your personal assets are relatively safe. Tax wise, accountants can find more ways to keep your money as an LLC or S Corp.

Question 2… any expenses you have in 2007 can be rolled over and deducted against income the business earns in 2008 when you open.

This is how we roll in So Cal… the Lawsuit Capital of the World.