Talked to a tax accountant about going LLC

[s2kinteg916]

I didnt get much information but my tax accountant said in california that its better to incorporate rather than go LLC. Supposely in california there is a yearly fee for LLC which is 800 plus alot of other details. Does anyone know much about this ?

If you dont have any assets does it matter if you go LLC ? I dont own any homes, cars or anything other than just my websites.

[Cutter]

Yes, I've heard about the $800 thing in california too. Even if you don't have any assets you could still have a judgement sitting over your head.

[s2kinteg916]

My tax accountant recommends going incorporated but it seems like alot of work when it comes to tax time vs a LLC which is very similiar to just sole proprietor . I barely understand enough as it is... this would just complicate things even more.

[Chris]

did he mention anything about incorporating in another state?

[demosfen]

I am suspicious that your accountant is only worried about getting repeat business from you (tax filing). No assets and a small business, if this is not perfect for sole proprietorship than what is? I would go with sole proprietorship, and upgrade to LLC later when/if you buy a house, etc. And like Chris mentioned, if you decide to incorporate don't do it in CA.

[John]

Can you still claim expenses if you don't register your business?

[s2kinteg916]

I am suspicious that your accountant is only worried about getting repeat business from you (tax filing).

Im pretty sure this is not the case i was just asking to get some details that way i know the details before i dabble in all this mess.

If i dont own a house or any assets is it worth even going corp / inc in order to protect myself ? I tried asking many times but everyone always tells me to ask a tax accountant.


did he mention anything about incorporating in another state?

No he didnt... Any details on this ?


Can you still claim expenses if you don't register your business?

John dont quote me since im not really familiar with this stuff but i was able to deduct expenses being self employed. I think they call it schedule C expense

http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

If you look at part 2 ... it gives u a good idea of what you can write off.

[Sagewing]

If you are doing business in CA, it's usually cheaper to incorporate there. The fee to register a foriegn corp in CA is almost as much as the annual fee, which is a minimum of $800 for Corps and I think for LLC's, too.

You can take lots of deductions as a sole proprietor, but more with an LLC and even more with a Corp. If you are making above a certain amount of money, it's usually worthwhile.

[paul]

Keep in mind that your websites and the income from them are also assets. In the event you loose a lawsuit the winning side would no doubt attempt to attach them.