Approve the Cookies
This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies. Read More.
OK
Index  •   • New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
Register to forums    Log in

 
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography
Thread started 04 Jun 2017 (Sunday) 11:42
Prev/next
sponsored links
(this ad will go away when you log in as registered member)

I incorporated, and I wish I hadn't. Should I dissolve and go LLC or continue inc.

 
JPJ2007
Member
JPJ2007's Avatar
121 posts
Joined Aug 2010
Tennessee
Jun 04, 2017 11:42 |  #1

Under the recommendation from my tax attorney who I have trusted the last few years to do my personal taxes
I incorporated because "You'll pay less taxes than if you opened an LLC." So I trusted them and paid $600 for the whole process.
I didn't do much business, I didn't take it serious and lots of other excuses.


I now feel like I shouldn't have. Literally a self bussiness that I don't plan on making 10k, much less 50k.
I was told "Buy everything on personal cards. Lease everything to the bussiness and lease cost varies on how well you do each month."
I thought this sounded sketchy, and I question even if it isn't whatever I charge my business in lease costs I then have to file on my personal taxes as income so how am I saving on any taxes.
Just doesn't make sense. I was really wanting something simple and I got way in over my head in accounts, State paperwork, Making a president, company board, Executives and all this mess when It's just
me by myself. I guess I could hire my wife since she stays at home with our son but I already work a full time career and a side job so this was just something else.

I still did right, filed the state annual stuff and also filed business taxes. I have a choice, I can pay $100 and dissolve the business. Open an LLC ($300/yr) and try getting going.
I like my name, but it's got INC in it of course and I guess I'd just swap the end of it to llc.

Not sure what to do, Not sure i trust who i've been talking to now.
Hell, My next door neighbor has a business theyve invested a million in and it's an LLC. *Mind you, they don't make 100k/annually but still...
btw Its for real estate media, and drone media. I have my FAA Part 107 commercial certs so im all legal and wanting to get back into this.

Thanks


Canon t3i, Sigma 10-20.

LOG IN TO REPLY
sponsored links
(this ad will go away when you log in as registered member)
RDKirk
Adorama says I'm "packed."
RDKirk's Avatar
12,551 posts
Joined May 2004
USA
Jun 05, 2017 14:15 |  #2

JPJ2007 wrote in post #18370728 (external link)
Under the recommendation from my tax attorney who I have trusted the last few years to do my personal taxes
I incorporated because "You'll pay less taxes than if you opened an LLC." So I trusted them and paid $600 for the whole process.
I didn't do much business, I didn't take it serious and lots of other excuses.


I now feel like I shouldn't have. Literally a self bussiness that I don't plan on making 10k, much less 50k.
I was told "Buy everything on personal cards. Lease everything to the bussiness and lease cost varies on how well you do each month."
I thought this sounded sketchy, and I question even if it isn't whatever I charge my business in lease costs I then have to file on my personal taxes as income so how am I saving on any taxes.
Just doesn't make sense. I was really wanting something simple and I got way in over my head in accounts, State paperwork, Making a president, company board, Executives and all this mess when It's just
me by myself. I guess I could hire my wife since she stays at home with our son but I already work a full time career and a side job so this was just something else.

I still did right, filed the state annual stuff and also filed business taxes. I have a choice, I can pay $100 and dissolve the business. Open an LLC ($300/yr) and try getting going.
I like my name, but it's got INC in it of course and I guess I'd just swap the end of it to llc.

Not sure what to do, Not sure i trust who i've been talking to now.
Hell, My next door neighbor has a business theyve invested a million in and it's an LLC. *Mind you, they don't make 100k/annually but still...
btw Its for real estate media, and drone media. I have my FAA Part 107 commercial certs so im all legal and wanting to get back into this.

Thanks

Incorporation in any form is one of those things that varies incredibly from state to state in the US. It's almost as though each state invented a totally different definition of "LLC" in their legislation. In some states it's cheap and easy, in some states it's expensive and difficult.

In the two states I'm familiar with, it's best used by professional practitioners (like doctors and lawyers) who may work under a business umbrella but actually have individual clients. The LLC keeps their liabilities separate even though they share a lot of their operations.

But in those two states, LLC does absolutely nothing for a business that is actually a sole proprietorship--the courts will "pierce the veil" instantly and still hold you as an individual responsible for your business liabilities.

But as I say, it all varies from state to state.




LOG IN TO REPLY
TreeburnerCT
Senior Member
TreeburnerCT's Avatar
Joined Dec 2016
Stratford, CT, USA
Jun 05, 2017 18:38 |  #3

If you don't trust the advice of your Accountant I would find a new Accountant ASAP and run everything by them. Tax and Business Laws vary wildly from State to State, so you would benefit most from speaking with a professional and not depending on the opinions of an Internet forum, regardless of how knowledgeable people here are.

-Joe


RapidPhotoCT.com (external link) | RapidPhotoCT Facebook (external link) | RapidPhotoCT Instagram (external link)

LOG IN TO REPLY
Jarvis ­ Creative ­ Studios
Goldmember
Jarvis Creative Studios's Avatar
Joined Aug 2013
Houston, Texas
Post has been edited 6 months ago by Jarvis Creative Studios.
Jun 05, 2017 19:14 |  #4

Wow. Sounds like a firing is in order. My CPA broke it down for me. He said (in Texas at least) that the "break even" point to even go from a Sole Proprietor to an LLC is 30K per year. Only at that level will it balance out. I'm still relatively new in my business so we've only briefly talked about incorporating.

As far as purchasing things for the business, his advice was just the opposite. Always keep business and personal separate. Even though it's not required by state law, when we started working together he told me that one of his rules is he does not work with people who don't have separate accounts for personal and business, and stand by those when purchasing. Luckily I already had that part down.


WEBSITE (external link)
flickr (external link)
Sony HX90V || Sony RX100V || Sony a6500 || Sony a9 || Sony E 10-18mm f/4 OSS || Sony FE 24-70 f/2.8 GM || Sony Sonnar T* FE 35mm f/2.8 ZA || Sony Sonnar T* FE 55mm f1.8 ZA || Sony FE 70-200 f/2.8 GM OSS || Godox speedlights and strobes

LOG IN TO REPLY
JPJ2007
THREAD ­ STARTER
Member
JPJ2007's Avatar
121 posts
Joined Aug 2010
Tennessee
Jun 06, 2017 02:47 |  #5

thanks everyone appreciate it.


Canon t3i, Sigma 10-20.

LOG IN TO REPLY
Silver-Halide
Senior Member
Joined Jan 2015
Jun 09, 2017 23:00 |  #6

I filed my own LLC paperwork in the state of Arizona, and it was really easy. I'm confused as all get out why there's a break even point, below which its 'not worth it.' I paid less than $100 from start to finish to form an LLC, and its incredibly cheap liability protection. There's zero change from a sole proprietorship as far as federal tax liability goes. Even if your wife is involved in the business and is paid. Only when you add a coworker, friend, sibling, etc to the list of owners does it get more complicated. As far as state tax goes, Every state is different so I wont suppose I know your particular situation.


Echoes in Eternity LLC | Tucson and Southern Arizona Wedding Photographer (external link)

LOG IN TO REPLY
TreeburnerCT
Senior Member
TreeburnerCT's Avatar
Joined Dec 2016
Stratford, CT, USA
Jun 21, 2017 14:47 |  #7

LLC liability laws vary from State to State, with some States offering lots more protection than others. I'm from Connecticut, but a lot of people here form their LLC in Nevada since Nevada makes it much more difficult to "pierce the veil" on a single member LLC. Something to talk with an Accountant about.

-Joe


RapidPhotoCT.com (external link) | RapidPhotoCT Facebook (external link) | RapidPhotoCT Instagram (external link)

LOG IN TO REPLY
sponsored links
(this ad will go away when you log in as registered member)

1,351 views & 1 like for this thread
I incorporated, and I wish I hadn't. Should I dissolve and go LLC or continue inc.
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography


Not a member yet? Click here to register to the forums.
Registered members get all the features: search, following threads, own gear list and ratings, likes, more forums, private messaging, thread follow, notifications, own gallery, settings, view hosted photos, own reviews and more...


AAA

Send feedback to staff    •   Jump to forum...    •   Rules    •   Index    •   New posts    •   RTAT    •   'Best of'    •   Gallery    •   Gear    •   Reviews    •   Polls

COOKIES DISCLAIMER: This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies. Privacy policy and cookie usage info.

POWERED BY AMASS 1.4version 1.4
made in Finland
by Pekka Saarinen
for photography-on-the.net
Spent 0.00143 for 6 database queries.
PAGE COMPLETED IN 0.02s
Latest registered member is Bruno Rosa
840 guests, 395 members online
Simultaneous users record so far is 6430, that happened on Dec 03, 2017