S corporation LLC for video production at DVinfo.net

Go Back   DV Info Net > And Now, For Something Completely Different... > Taking Care of Business

Taking Care of Business
The pen and paper aspects of DV -- put it in writing!


Reply
 
Thread Tools Search this Thread
Old June 19th, 2005, 02:39 PM   #1
Regular Crew
 
Join Date: Nov 2004
Posts: 83
S corporation LLC for video production

What are the drawbacks and benefits related to taxation?

I have some equipment and start-up expenses that I would like to amoritize plus I would like to add a retirement plan and buy a company car.

I know I should see a CPA but I need to educate myself a little before I see one.
Jerry Mohn is offline   Reply With Quote
Old June 22nd, 2005, 09:14 AM   #2
Regular Crew
 
Join Date: Dec 2002
Location: Allentown, PA
Posts: 134
Jerry,

For my company, i am a sole membe LLC. This may or maynot be the way to go for you.

however everything i'm about to say here will vary from state to state. I'm based in PA, and after reading what i say here, not only should you check with your CPA, but also a lawyer just to be safe.

I went with an LLC instead of the S corp because there were little extra yearly costs and paperwork.

With an LLC, all profits of the corp are transfered directly to the members, like a sole propeitor. S-corps profits are split among the share holders in the company based upon percentages held. S-Corp also has extra IRS paperwork to fill out and requires yearly (atleast) corporate meetings and corporate records. an LLC does not.

One trade off, currently, atleast in PA, a sole member LLC hasn't held up in court yet as a corporation - no court cases against it last i talked with my accountant yet - single member LLCs are only a relatively recent invention. In theory, everything is the same as an S-corp, but just not proven.

just my 2 cents.
Like i said, confere with both a CPA and a local lawyer that you trust to really find out which is best for you.
~Mike
Mike Rinkunas is offline   Reply With Quote
Old June 23rd, 2005, 09:14 AM   #3
Regular Crew
 
Join Date: Nov 2004
Posts: 83
Hi Mike, thanks for the input. You can be an LLC and a S-corporation at the same time. Filing as a Sole Proprieter could be done with or without the LLC. LLC stand for limited liability company not corporation. I have a LLC that files the 1120s for s-corporations. LLC is not a factor when filing your taxes. As a SP LLC you can file on your 1040 without additional paperwork but you don't get the same opportunities for write offs as an s corporation.
Jerry Mohn is offline   Reply
Reply

DV Info Net refers all where-to-buy and where-to-rent questions exclusively to these trusted full line dealers and rental houses...

Professional Video
(800) 833-4801
Portland, OR

B&H Photo Video
(866) 521-7381
New York, NY

Z.G.C.
(973) 335-4460
Mountain Lakes, NJ

Abel Cine Tech
(888) 700-4416
N.Y. NY & L.A. CA

Precision Camera
(800) 677-1023
Austin, TX

DV Info Net also encourages you to support local businesses and buy from an authorized dealer in your neighborhood.
  You are here: DV Info Net > And Now, For Something Completely Different... > Taking Care of Business

Thread Tools Search this Thread
Search this Thread:

Advanced Search

 



Google
 

All times are GMT -6. The time now is 09:08 AM.


DV Info Net -- Real Names, Real People, Real Info!
1998-2017 The Digital Video Information Network