Online Forms To Form A S-Corp Or LLC?
Does anyone know where to get the paperwork to form an LLC or S-Corp? Or should I use a local attorney? and what are the normal costs for both? Also, I read in an article here that an S-corp is better for flipping or short term holding because you avoid the 15.3 % self employment tax that an LLC will have. I also read that an LLC has all the benifits of a corp and a sole proprietorship. Any input on this area would be great as well.
Thanks
Check with your states web site. This is were I got my paperwork to form my corp. I know you can get them to form the LLC I'm not sure about the S-Corp, I thought that this was a designation through the IRS and once a corp was filed with the state then you filed for S-Corp status with the IRS. Not positive on that though. It cost me $60.00 to do it myself through the state.
JDC21,
I'm not a lawyer or CPA so this is what I know, aka, my opinon.
-Learn as much as you can with a book or two (the Nolo press LLC books are pretty good and very understandable) and online materials
-Find an attorney that specializes in real estate and interview him/her to see if your needs fit with his/her experience and personality.
-Use the lawyer to review what you have done (sometimes referred to as a coaching relationship, which some wont do cuz there is less money in it) and do the filing online yourself
-I saw myfroggers article on the S-corp vs. LLC and left a comment on there. The IRS requires you to take a salary as an owner/employee of your S-corp. The 15.3% tax is therefore paid on that distribution. If you hold the money in the company and bonus it out at the end of your fiscal year (trying to avoid coloring it as payroll and avoiding the 15.3% hit), the IRS frowns on this and you could get fined large if they catch up with you.
I am not saying that an S-corp is in any way bad or that you could not avoid some of the self-employment pain by going that route. In CA, LLCs are also subject to an annual fee based on their total income. If you get into the $1M neighborhood for your gross, this fee is in the $8-10K range and it goes up from there. This is why I chose to go with a C-corp for buying, selling flipping, and LLCs for holding longer term (mostly for the liability protection)
My 2 cents....good luck
Molotov
Thanks for the info and advice.
Regarding the post about getting hit with a penalty for leaving money in an S-Corp, that is not entirely true. If you take out a reasonable salary and pay your 15.3% on that, then you can take out the rest as a dividend and not get penalized. Just don't try taking a $1000 salary and $80,000 worth of dividends.
You can set up your LLC online if many states. You do need an Operating Agreement as well. If you do a GOogle search you can find free ones, but make sure that you read up on a few LLC books so that you know what else to put in your Operating Agreement. Also, if you set up the LLC, but conduct business as yourself i.e. - taking title in your name, paying from your checking account, signing forms without your LLC title, then if a problem does arise, you will find that your LLC gives you NO protection at all.
I have used www.corporate.com to file both a full corp as well as an LLC. Easy and cheap.
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I can't seem to remember where I heard a company that was offering to incorporate you and with that came a corporate credit card too. Anyone know who was offering that? Checked out the "corporate" website above and that it was very nice.
What kind of concerns do you have after setting up a S Corp. Is there a lot of maintenance to be done, and anyone to help you by answering questions?
thanks
Quote:
On 2003-12-09 18:28, GFous wrote:
I have used http://www.corporate.com to file both a full corp as well as an LLC. Easy and cheap.
Did you choose the $199 plus state fees package or the $380 plus state fees package?
Thanks
Mike
I have been told an LLC costs 45 to set up from one person and 75 from another...yet on the website it is 500 to set up an llc in fla.
where can one go to get the papers and file for under a hundred dollars?
I contacted my attorney about setting up an LLC and he said his fee would be $1800 ....so I immediately thought about doing it myself. I am presently searching the net for info and plan to get a book of some sort to learn more. I have one rehab to flip in process, and will be putting a contract on a potential rental tomorrow. From what I'm reading an LLC is best for the rentals, while an S corp is best for the flips. Is this correct?
Quote:
Did you choose the $199 plus state fees package or the $380 plus state fees package?
Thanks
Mike
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Seems to me it was less money when I did it. I now do all my LLC's ( One for each property that I hold) myself. Fee depends on state. In Florida you go to www.MYFLORIDA.COM
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Quote:
On 2003-12-10 03:15, GFous wrote:
Quote:
Did you choose the $199 plus state fees package or the $380 plus state fees package?
Thanks
Mike
Seems to me it was less money when I did it. I now do all my LLC's ( One for each property that I hold) myself. Fee depends on state. In Florida you go to http://www.MYFLORIDA.COM
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That was the reason for my question when you said it was cheap.
Someone also told me there is a book you can buy from office depot for $50 or so and do it yourself. You'll still have to pay the state fees, but it will still be way cheaper. I had an attorney tell me it would be $750 for a LLC and $850 for an S-Corp (which still seems to be too much).