sole propieror vs. LLC - Page 2

Thanks! I don't know how, but I never came across the page on the KY.gov site while I was reading.

Originally Posted by Bobby

Thanks! I don't know how, but I never came across the page on the KY.gov site while I was reading.

They don't call me Google Queen fer nothin'!

What we did was form a S corp. Yes it costs more but the tax benefits are awesome! For example, if I make 100k I am taxed at around 32-35%. With an S Corp I pay myself a 50k salary and take the other 50k as a dividend. The salary is taxed at around 28% and the dividends are around 15%. However, I am doing this on a much grander scale them most people.

Another benefit is I have a registered agent. This is a person who is paid a yearly fee to be the point of contact for legal docs. Now no one can look up my home address in public records.

I have never done LLC yet, but have considered it.

I will tell you thatr as the last 3 years I was operating as a contracted employee through 1099 and I was out of state all the time. I saved receipts on EVERYTHING. Gas, housing, food, oil changes, new tires, new laptop every year, internet service, tools, you name it. NOW, I dont understand what you guys are saying as paying small payments all year then getting it all back but they will not pay you more? I have never heard this, even through other employees i worked with. I never paid a dime on taxes, and at the end of the year when I filed, I submitted all of my receipts, separated with explanations of how they helped me or were required by my job. not only did I pay nothing but I REGULARLY got back THOUSANDS. I have always heard LLC's are better in case you were to ever be sued/