I need to decide wich one to go with !,,,what is the easiest to deal with and what are the different liabilities,,,i have read this till my eyeballs hurt last night ,and really need a hands on info on this subject !
LLC or Inc ???
- Thread starter Ironhead
- Start date
talk to an accountant
Venom Power
Full Access Member
Okay, if you are really undecided about this I think there is a method available on how to help you decide if you.... Honestly James, :dontknow: I don't have a clue what you're talking about.
ChrisAZ
Full Access Member
I always use LLC's because it fits my situation. It depends on your situation and your accountant should be able to guide you in this. For most small businesses an LLC is the way to go. Did the two accountants you spoke to explain why they thought you should choose one or the other? There should be specific reasons and they should even be able to give you a chart showing the benefits and downsides of each for you specifically. Sounds like you might need to consult a more thorough accountant.
id go with the one who thinks he can save you the most money. is liability a big issue for you as far as lawsuits?
LLC sounds cooler.
eddie102870 said:
i am looking at taking over a company that i want to make sure any type of problems that may come up down the road from the old owner ,,,he will be taking name of company and basicly be shutting his company down and i will be starting mine ,,,new name and all including his employees will not be kept ,,,i just dont want them trying to come after me if he did something to them and so on and so on ,,i have also been informed that there is some tax diference between the two that i understand ,,its the DOWN the ROAD stuff i want to protect myself from..
if you go with a different name you shouldnt be liable for anything he did in the past. just check with a accountant you trust and see which one they are more familiar with as far as taxes go.Ironhead said:
eddie102870 said:
the biggest thing is i know he use to not pay overtime ,,,he always said that if you want to work extra hours it was strickly volintary and he did not have to pay 1 1/2 times ,,,that way ,,,this kind of spooked me ,,,he is a super nice old guy and helped out all emplyees and thier kids growing up ,,i am spooked that when someone else takes over that they will have no guilt trying to come after new owners ,,,AKA me ,,,i have a meeting friday morning with my lawyer and accountant to look over his books ,,just was hoping to get some early info on this subject before hand from someone that might have delt with a take over like this !
Black1
Full Access Member
ChrisAZ said:
Agreed.... LLC is the way to go. Cheap, easy, and just as good (tax-wise) as a Corp.
belgiumbarry
Full Access Member
sorry , Ironhead , how old are you :dontknow:
taking companys over...
not interested in mine ?
taking companys over...
not interested in mine ?
belgiumbarry said:sorry , Ironhead , how old are you :dontknow:
taking companys over...
not interested in mine ?
im a spry 49 year old with a bad attitude lol,,,but my doctor said last week after he took my manhood and said my prostate was good
and i dont know the exchange rate from euros lol
and unless you do plastic injection molding ,,,i would be lost,since my doc says i cant drink anymore and i dont do drugs i fugure if i work my ass off i wont have time to think on it !
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talked with momma a bit on it skittles, she said talk to a lawyer
there are just too many variables and it really depends on your situation, how large you intend to go, employees, and what you are actually producing.
there are just too many variables and it really depends on your situation, how large you intend to go, employees, and what you are actually producing.
SPACEMONKEY1
Full Access Member
I'll ask my wife and see what she thinks. She keeps my ass in line and is a CPA
belgiumbarry
Full Access Member
Ironhead said:im a spry 49 year old with a bad attitude lol,,,but my doctor said last week after he took my manhood and said my prostate was good
and i dont know the exchange rate from euros lol
and unless you do plastic injection molding ,,,i would be lost,since my doc says i cant drink anymore and i dont do drugs i fugure if i work my ass off i wont have time to think on it !
hehhe, great Ironhead ! hope you are lucky and make a future !
PS i was 42 , 10 years ago , when i began my buzziness
.... should have it started years before ! ..but , oke, you cannot travel in time. So i accept it. I had 3 years some stomach pain
...but succeeded :rock: My advice : don't lay to much thrust in hands of accountants, lawyers... etc....you're on your own man, that's the hole meaning of becoming "boss"... the only advice i got , believed AND was true : if you can pay everything ,everybody without earning something for yourself , the first 3 years ...you have a GOOD start.
:rock:Scrambler1
Full Access Member
Don't buy the company, just do an asset buyout. This shields you from any past liabilities like lawsuits that you don't know about or haven't come to fruition yet. Also shields you from any issues with employees as you didn't buy them or the company they worked for. The old company dissolved and you now own the assets... physical or intellectual. This is by far the cleanest way to take over a company... hire back those you want or don't hire any of them back... your choice. Also I hate to say it but you are not responsible for any kind of severance for the old employees.
That said you can structure your new company either way... LLC or sub S Corp. There are some tax and liability differences so that's where you need to talk to lawyers/accountants. LLC's are easy to setup and more basic from an administrative perspective. IE small entities that I've either set up or joined like owning hunting property are LLC's. Day job company is S Corp. To get up and running with a smaller company I'd start with a LLC and roll it up to something else if the need presents itself later.
That said you can structure your new company either way... LLC or sub S Corp. There are some tax and liability differences so that's where you need to talk to lawyers/accountants. LLC's are easy to setup and more basic from an administrative perspective. IE small entities that I've either set up or joined like owning hunting property are LLC's. Day job company is S Corp. To get up and running with a smaller company I'd start with a LLC and roll it up to something else if the need presents itself later.
I cant answer your question James unless I sat down with you and discussed all the variables........your best bet is to talk to a competent CPA that is local to you...LLCs and corporations rules vary from state to state......the federal govt taxes each based on the individual state....I would not place much confidence in an attorney other than drawing up an agreement between partners...most attorney's are not up to par related to taxes as my brother (an attorney) will quickly tell you..
Examples of variance between states..TN does not recognize S corporations while all the bordering states do........LLCs are taxed differently in TN vs VA.....
And you may not want to be either...sole proprietor may be your best bet...in fact, I have more business owners come to me wanting to get rid of the LLC or Corp than wanting to form one...mainly because they went to an attorney for advice to begin with.. ..and I am not bashing attorneys...my experience is attorneys only look at the liability side and have little tax knowledge...unless they specialize in tax..
Examples of variance between states..TN does not recognize S corporations while all the bordering states do........LLCs are taxed differently in TN vs VA.....
And you may not want to be either...sole proprietor may be your best bet...in fact, I have more business owners come to me wanting to get rid of the LLC or Corp than wanting to form one...mainly because they went to an attorney for advice to begin with..
..and I am not bashing attorneys...my experience is attorneys only look at the liability side and have little tax knowledge...unless they specialize in tax..
kickinassrt-10
Full Access Member
LLC all the way....you're the sole guarantor and it's great for small business's...
It's what I went with!
It's what I went with!
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