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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Incorporating thy self...
How did you do this?
Is it hard? Do I need to get a lawyer? I am sitting down with an accountant next week.
Long story very short...did a project someone liked and now they want ten more (I just invoiced them the first time) they are talking paying me a flat fee and I pay out everything (one freelance employee, and editor, etc)...so I guess I am a business?
oh jeez, now I need a name...
I am very overwhelmed so any hep would be great....
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Posted 5/29/07 8:39 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Incorporating thy self...
the accountant can help you more them me- this is off the top of my head from starting a small business in college
you need to form a corp- I think an S corp- I believe it's around $500????
congrats! this is awesome!!!!!!!
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| Posted 5/29/07 8:41 PM |
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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Re: Incorporating thy self...
Posted by Beth1210
the accountant can help you more them me- this is off the top of my head from starting a small business in college
you need to form a corp- I think an S corp- I believe it's around $500????
congrats! this is awesome!!!!!!!
thanks 
it's just so freakin' confusing...
s-corp, c-corp, LLC
what the h?
what happened to good old payroll
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| Posted 5/29/07 8:45 PM |
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luvsun27
Check out my cool glasses
Member since 5/05 8135 total posts
Name:
Kim
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Re: Incorporating thy self...
I'm no help...my accountant is also a lawyer 
DH and I formed a partnership, as it was a better choice for us, than a corporation or a sole proprietorship. He owns 10% and I own 90% of the business 
Good luck and congrats 
ETA..we are considered an LLP (Limited Liability Partnership)
Message edited 5/29/2007 8:47:24 PM.
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| Posted 5/29/07 8:46 PM |
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sunflowerjesss
Mommy to 3!
Member since 10/05 20369 total posts
Name:
Jesss, duh.
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Re: Incorporating thy self...
DH and I were talking about opening a business (no storefront, but it would have been internet based).
We spoke to our Lawyer who has Lawyer friends and such and was able to draw up the paperwork and name us a single owner LLC. It would have been about $600 when everything was said and done.
HTH and Good Luck!
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| Posted 5/29/07 8:47 PM |
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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Re: Incorporating thy self...
that's my question than I guess...
LLC or corporation?
I know that sole proprietor is not the way to go, I think.
My question is that being a freelancer, I am usually payrolled with projects...so now I am payrolled AND a corp? can I do both...
and in the future I may not need this, so is it worth it for 10 weeks?
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| Posted 5/29/07 8:50 PM |
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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Re: Incorporating thy self...
bumping for the am crew...
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| Posted 5/30/07 9:28 AM |
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MikesWife
Wanting...........
Member since 1/06 6887 total posts
Name:
Karen
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Re: Incorporating thy self...
LLCs offer greater flexibility in ownership and operation. There are no restrictions on ownership and profits can be distributed however it has been laid out in the operating agreement. With the S corp you can only take the percentage in which you have contributed. If you contributed 20% of the initial cost, you can only take a 20% of the profit. If you plan on being the sole shareholder, this shouldn't matter.
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| Posted 5/30/07 9:48 AM |
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DML
LIF Adolescent
Member since 5/05 567 total posts
Name:
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Re: Incorporating thy self...
Definitely talk to your account. A lot of how you are set up will determine how you are taxed, and how much liability you have exposed. You will want to set up the best way so you don't get taxed to death.
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| Posted 5/30/07 9:51 AM |
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Kate07
Feel better my little guy!
Member since 5/05 4476 total posts
Name:
Kate
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Re: Incorporating thy self...
Congratulations Kelly !!! You deserve it !
Link
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| Posted 5/30/07 9:58 AM |
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DanaRenee
Fitness Junkie!
Member since 6/06 6470 total posts
Name:
Dana
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Re: Incorporating thy self...
Posted by mommy2bella
that's my question than I guess...
LLC or corporation?
I know that sole proprietor is not the way to go, I think.
My question is that being a freelancer, I am usually payrolled with projects...so now I am payrolled AND a corp? can I do both...
and in the future I may not need this, so is it worth it for 10 weeks?
You are payrolled? Do you mean that the person you freelance for puts you on payroll and withholds taxes? That seems odd to me. I would think they would treat you as independent and give you a 1099...of course depending on your job specifications and whether or not you fall into the employee or independent category.
If you report your income instead as a sole proprietor (same as receiving a 1099) you will be responsible for your own "withholding tax" thereby requiring you to pay estimates throughout the year along with a 15.3% rate for self employment tax.
As the sole owner of a corporation you would technically pay this 15.3% as well (you'd be on payroll and you'd have your own taxes withheld and the corp would be resposible for the other part...your part and the corps part = 15.3% in payroll tax...specifically FICA (social security & medicare)...netting out to you paying for it all anyway since you would be sole owner.
Corps offer different benefits than LLC's and sole proproprietorships and based on MANY factors you need to discuss with your accountant, one could benefit you over the other...such as, do you have a health insurance plan, life insurance policy or a pension/retirement plan? All related to different allowable deductions on the tax returns.
IMO, I don't think its worth incorporating or setting up an LLC for 10 weeks. You'd have to set up the corp or LLC (at least $500), file a seperate tax return for the corp or LLC and then dissolve it ?! SO much work and accountant fees involved!!
It is definitely worth it to sit down and discuss it w/a CPA/professional.
HTH!
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| Posted 5/30/07 10:05 AM |
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