Starting a business - some analysis help needed...

A

abc94536

Registered Users (C)
PLEASE FORGIVE ME IF THESE ARE VERY BASIC QUESTIONS - I AM TRYING TO DO SOME ANALYSIS AND SEEK SOME EXPERT KNOWLEDGE HERE !!!! THANKS

I am trying to make an estimate - that WITHOUT ANY REVENUE stream if sb starts a business how much will he will have to bear in terms of taxes and other items in CA. For eg.

A)
Its approx $250-$300 for initial company (C, S or LLC) registration.
B)
Annual tax - LLC - CA tax - $800.

Similarly, there may be list of items that a person needs to take care 'AT A MINIMAL'. Guys if you have a list with the $ figures please share it with me.


My next questions is WITH REVENUE stream - as we understand S corp probably is the most lucrative thing in terms of saving taxes. How about the C or LLC? Please share if you have any matrix stating the different taxations, deductions etc with a baseline 100 K annual revenue stream and with one employee with a pay of $60k from this 100 k revenue stream.

Thanks in advance!
 
abc94536 said:
Friends, any suggestions....
Click to expand...

Can you put your question more clearly. From what I have read you are asking to prepare a tax return with virtual numbers.

Please reframe your question, I certainly will try to help you.

Thanks
 
Thanks Business woman!

Actually you caught me right! I am indeed looking for virtual tax nos. for both the scenarios (with revenue and without revenue) for LLC and INC.

It may be probably too much to ask - but this is my deciding criteria. I am not looking at any lucrative client - in all possibility with my current situation I would like to open the company in my wife's name and I will work with her as an employee.

Besides - there could be situations where in she can also work through this (her) company as a consultant (on 1099 or corp to corp basis).

thanks again!
 
From your question, I understand you are trying to Incorporate/ set Up LLC in California:

Fees involved: Corporation fee/LLC fee to Sec of State: $100/$ 70( $ 15 service fee if you get to SS and submit application and wait)

Other Fee : approx varies $ 50-75

Yearly to FTB: $ 800(Both for LLC and Corp.)

LLC has a Gross receipts fee depending the gross income above $ 250,000.

LLC(Partnership) is a flow through entity/C corp you pay taxes on the Corp return- depends on tax bracket/ S corp- Flow through - taxed at your Personal bracket.


In your case, this is what I can think abt right now.
I Hope this helps.
 
Thanks again!


As me and my wife both work in 'software engg.' area for once we were thinking of going for LLC mainly to avoid double taxation with INC. I read somewhere that
" Taxes: LLC members pay self-employment taxes, the Medicare/Social Security tax paid by entrepreneurs; it's calculated on 15.3 percent of profits. Contrast this with an S corporation: Self-employment tax is due on salary only, not your entire profits. You're caught in the self-employment tax net if: 1) you participate in the business for more than 500 hours during the LLC tax year; 2) you work in a professional services LLC (health, law, engineering); or 3) you can sign contracts on behalf of the LLC."

Is this different from normal income tax that we currently pay? Less???

Besides what does this mean? "Fewer incentives - LLCs aren't ideal if you want to give fringe benefits to yourself or employees. Unlike with a C corporation, you can't deduct the cost of benefits with an LLC. And since there's no stock, you can't use stock options as incentives for your employees. "
Does this mean that we can't put our rent /house mortgage, per diem expenses through this?

Thank you!
 
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Also, how about if this LLC is owned by my wife and I am the employee in this company - does it change the equation? Will the tax liability be more since now we have an employee in this company?

Besides, can I be a LLC partner /manager as well as an employee both at the same time? i.e. If am drawing a salary as "guaranteed payment" am I subject to the 'Income tax' or is it 'self employment tax'. Please let me know in both the cases - (a) when I am a member and an employee (b) when I am purely an employee.

(b) is important for me as I am on EAD and as I believe I have to have a fulltime Job be it in my wifes's company (who is also on EAD). That means I need to pay income tax and can't pay self employment tax.
I may be wrong about Immigration law and am looking forward for an expert opinion.
 
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