[Hidden-tech] LLC questions

[Jeremy Dunn]

You can get a TaxID (TIN) from the state online in about 10 minutes.  It 
costs $109 if memory serves, or something in this range.

I evaluated several options including LLC, but settled on S-corp structure. 
Both offer a "corporate shield" against any claims; both have additional 
costs and paperwork such as incorporation, annual filings, etc.  The 
deciding advantage from my perspective was saving social security taxes by 
paying out a portion of income as profit instead of salary to myself. 
Probably this depends to a certain extent on your anticipated revenues and 
expenses.  It would be worth a few hours with a spreadsheet, figuring it 
several ways to find out which is best.

- Jeremy

----- Original Message ----- 
From: "Charlie Heath" <chasheath at comcast.net>
To: <Hidden-discuss at lists.hidden-tech.net>
Sent: Wednesday, January 31, 2007 11:28 AM
Subject: [Hidden-tech] LLC questions


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>
> I may need to incorporate, would appreciate insights.
>
> What's the lead time for forming an LLC or S Corp.  If I incorporate, it
> will be in anticipation of a contract job; I've been using DBA but the
> contract is big enough that I'd like to incorporate. But I won't be 
> offered
> a contract until days before I'm expected to sign.  Can I initiate a
> contract using the incorporated name prior to receiving confirming 
> paperwork
> from the state?
>
> I've been a partner in a subchapter S corp before but that was prior to 
> LLC.
> It sounds like LLC is simpler, but in Mass, S corp fees are lower.  I 
> guess
> this has been hashed out here before, but is there any reason for a fairly
> simple sole proprietor to look closely at the details rather than just 
> going
> LLC?
>
> Thanks much.
>
> Charlie Heath
> Blue Herring Consulting
> http://blueherring.net
>
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