Well, the attorney I used before for my IT consulting business only charge me like $200 to be a Registered Agent/Office.
In that case, I have a P.O. Box, so he doesn’t handle any mail unless it has to go to a Physical Address/Registered Office (e.g. Letters from Secretary of State). And that is one reason the fee is so low.
I’m curious about this one. There is always debate about which is best and never a clear answer. What makes you think an s-corp is better for legal purpose? and tax?
Well, I’m not sure about S-Corp vs LLC, and I am by no means a lawyer, but this is what I know (and believe to be correct)…
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A Corporation is a legal entity and treated like a “person” in the eyes of the law. So being incorporated insulates the Owners/Board of Directors, because the corporation can be sued and liable unless you are like Enron or BP or Goldman Sacs?! (Oh wait… this is America… Corporations are always right and blame free!!)
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Being an S-Corp is a tax designation from the IRS where all income passes directly through to the owner with single taxation as opposed to C-Corporations suffer from double taxation.
When IBM - as a C-Corp - makes $$$ they must pay the IRS, and then when the pay their employees, those employees must also pay taxes on their wages.
As an S-corp, all revenue passes straight through to the owner and you only taxes once on your individual tax return. (I’m not a CPA, so they may not be the best way toe explain it.)
So, in summary, being incorporated and applying for S-corp status serve to insulate you from being sued and liable (i.e. “limited liability”), and it also serves as a wicked tax shelter.
For instance, if I worked as W-2 contractor and bought Post-It notes it wouldn’t be tax deductible. But if I was an S-Corp (or technically a Sole Proprietor) and working on a 1099 basis, then I can right off the Post-It notes as a legitimate business expense.
Taxes 101:
Want to minimize your U.S. Tax Liability?
1.) Be poor
2.) Be rich
3.) Be a business
Anyways, back to recapture my thread!!
TomTees