Posted by Glenn OH on February 09, 2000 at 19:30:33:
I think we have had a bit of mis-communication. I understand fully the expensing advantage of C & S-corps, and LLC’s and LP’s. That part is a given. My question is which of these 4 are best. I had a computer business as an S-corp, and got a little tired of keeping up corporate minutes, etc. A C-corp is worse, plus the double taxation of dividends. My new RE investing business is an LLC because of the easier paperwork requirements. I will probably use LP’s with the LLC as General Partner for some of my deals with other investors.
The key is limited liability and minimal taxation.
I am setting up my own C Corp for my R.E. Biz. I am doing the filing myself and getting a kit etc. I need an Address to put on it and I know there are companies that you can hire as your registered agent just for the use of their address but they cost around $125.00 per Year. I’m on a budget and I don’t want to use my Home address. I am in California.
Anyone know what my options are…Can I use something Like Mail Boxes etc. as I want to get another mailing address anyway. I was told I can’t use one of these. What do you guys use for this?
A resident agent is required in the state of incorporation and in any other state in which the corp. is qualified to do business. The purpose of the resident agent is to have a person and a real address on whom to serve lawsuits against the corp. if one ever arises. You cannot have a PO Box.
Getting a resident agent is not the same as paying somebody to let you use their address for your corporation, although some resident agents do offer that service, typically for a much greater fee.
If you have an attorney, use him/her as your RA. You could also ask a friend who owns an established business to be your RA. Just make sure they understand their responsibilities for being your RA, i.e., to immediately notify you if the corporation is served with a lawsuit.
Posted by Emmett-NC on February 05, 2000 at 20:14:38:
Correct me if I am wrong, but double taxation is applied IF AND ONLY IF dividends are paid to shareholders. Since that rarely happends with a small corp, I don’t think it is something to worry about
Posted by Glenn OH on February 09, 2000 at 14:59:55:
I was assuming that most profits would be brought out as dividends. My concern was that bringing it out as payroll would lead to 15.3% FICA and Medicare taxes, on top of income tax.
go to the sight Sageintl.com these guys have some excellent stuff on C Corps. Other books that I have read on the subject are “Inc. and Grow Rich” Sage Intl. abouit 50 bucks, “Brilliant Deductions” Wade cook, at most bookstores about 15 bucks or so, and “The Secret Millionaire” J.J. Childress at most bookstores, about 15 bucks or so also.
This stuff will help tremendously.
Just understand your goal is to spend(expense) the money before it gets out of corp so that your using it’s full value not it’s watered down after tax value.