incorporating...which way to go?

[Tomas Szklarski]

Hey guys,

 

I am trying to incorporate myself, and have been reading a lot of info, but am still stuck as to which would be best, the S-Corp or LLC. Are there any others I should be looking at? Which ones are you and why did you choose them?

 

Thanks,

Tom

[Delfino Ramirez Jr]

Hey guys,

 

I am trying to incorporate myself, and have been reading a lot of info, but am still stuck as to which would be best, the S-Corp or LLC. Are there any others I should be looking at? Which ones are you and why did you choose them?

 

Thanks,

Tom

 

 

Hi Tom,

 

I have recently formed as a Single Member LLC in my state; each state is different and this may or may not an available option in your state. The five structures that are available in the US are Sole Proprietorships, Partnerships, LLCs, S-Corporations and C-Corporations.

 

The following link has a good comparison between S Corp and LLC.

 

http://www.powerhomebiz.com/vol136/structure.htm

 

Whatever type you decide on, it is highly recommended that you sign an operating agreement. It doesn?t matter how basic the operating agreement is, there are available templates online, just have one.

 

 

Good Luck,

Del

[Lawrence Karman]

California has an $800 minimum LLC tax you must pay every year. Not good. I don't believe there is a minimum tax with an S corp. One reason to form an LLC is to shield yourself from Liability. That is not usually a problem for the average Steadicam operator (exception: Erwin; search posts regarding passing out). Also an LLC is usually set up to allow many "members" or partners/owners. Not really necessary for a single operator.

[RonBaldwin]

I have an s-corp and I think I pay an $800 minimum too. So far so good, been going for 4 years. Fiscal year confuses the poop out of me, but let the accountant deal with it.

 

RB

[Tomas Szklarski]

Thank you guys for the info! I still haven't made a decision yet but I am gonna think about it till Monday, since I actually have the weekend free!!! then I'll make up my mind.

 

So if anybody else would like to chim in that would be great.

 

 

Thanks again,

 

-Tom

[Chip Monk]

I did the S-Corp. Don't really know why, my CPA set it up. It mainly comes down to how you file taxes. You may want to check with your CPA.

 

LLC's can usually be converted to S-Corps by filing another document, so that may be a way to go, and convert if you need to for tax reasons.

[Marc Abernathy]

I'm an LLC... in addition to Steadicam Operating, i am also a music producer and going LLC seemed a goodway for me to go. i have a publishing company setup in ASCAP as well.

[Philip J. Martinez SOC]

Incorporating

 

I?m doing a job for MTV Networks and I?m having a problem billing. They want to put me on a timecard and kit Rental for my Steadicam or be a corp. what are people doing, Corporation, DBA, LLC, S Corp. I?m in NYC any advice would be appreciated

 

Thank You,

 

Philip J. Martinez

[Afton Grant]

Hey Philip,

 

This topic was discussed not too long ago. Take a read through the responses to that. Hopefully it'll answer some of your questions.

 

http://www.steadicamforum.com/forums/index...?showtopic=3337

 

Good luck!

[paul magee]

Hey Philip,

 

The best advise I can give you is to find an accountant you trust, explain everything about your business

situation including your long term goals and then let them advise you about how you should set up your business. I incorporated back in 92 based on the market I'm in and the additional services I offer.

I go payroll on union jobs and bill my kit through my company. On other types of assignments I run everything through the corporation. I don't know if it saves me any serious money versus being a sole proprietor but it does afford me more choices with what I can do with pre-tax dollars when looking at gear and other expenses.

The downside is the quarterly returns, fulfilling the corporate paperwork requirements and the extra accounting fees for the business. I've had the same accountant since 1986 and he has keep me on track in terms of keeping to my stated business goals.

 

best of luck

 

Paul Magee

Philadelphia, PA

[Philip J. Martinez SOC]

Thanks for the advice

 

 

Philip

[David Shawl SOC]

Is there any advantage to just registering a "Doing Business As" DBA? I'm a full student college student who is planning to do Steadicam part-time in Massachusetts and I hope eventually in NYC and LA. For the time being in Boston, I can spend $50 to register myself as a sole proprioter, though I won't have any liability protection nor tax benefits. I don't see a need for myself to incorporate or LLC until I am doing this full time. What do you all think? Thanks

[Fabrice Maurel]

Hi David, I think registering as a sole propriator is fine. I think sometime a lot of people thing being incorporated shield them from any legal actions against their person, which is not the case at all. It does protect you somewhat if you go into, let say, a bankrupcy type of situation,then creditors cannot go after your personal assets if you are incorporated. You describe yourself as a college student, my guess are you don't have much personal assets to protect, such as a house. What you need however is some type of insurance.

Also, thinking you cannot deduct anything if you are not incorporated is wrong, you can. Talk to a CPA or a Lawer for more details.