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NYLAWLADY
NYLAWLADY, Attorney
Category: Business Law
Satisfied Customers: 814
Experience:  15 YEARS IN PRIVATE PRACTICE BUSINESS COMMERCIAL LITIGATION
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i have a home-based business selling hand made jewelry. its

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i have a home-based business selling hand made jewelry. it's just me. i was thinking of incorporating, would an s-corp make the most sense?
Submitted: 4 years ago.
Category: Business Law
Expert:  INFOLAWYER replied 4 years ago.
Are you concerned with creditors? what do you want to accomplish?
Customer: replied 4 years ago.

well, im always thinking worse case scenario... so yes, thinking about future creditors (none right now, ive purchased everything myself so far so no creditor issue now), product liable issues (what if some freak accident thing happens, kid chokes on a bead/nut/stone etc that comes lose from one of my pieces).

 

I want to have a separate entity (not me personally) to be responsible for taxes, financial obligations, etc.

 

it's a small business and i can't foresee tons of money coming out of it so i want to keep itseparate, legal, but small (with possibility for growth) and managable. from what i read a corporation woudl require me to have directors and officers and annual mtgs and reports.....is that necesary if im the only shareholder? that is why i thought an LLC sounded simpler but not sure if i can be a once person LLC or whether it will work in avoding double taxation like an s-corp does.

thanks

 

thank you.

 

Expert:  INFOLAWYER replied 4 years ago.
I am going to refer this to our tax people for tax considerations.
Customer: replied 4 years ago.
thank you.
Expert:  NYLAWLADY replied 4 years ago.
Yes, form an s- corp. The s corp status is just for tax purposes. You should never own a business in your own name. If anything goes wrong all the liabilities are on you personally. Once you set up a corporation, have the attorney file (within 3 months) for the s corp. This way you will not pay taxes twice, once for the corporation and then for you personally. The s corp status will allow the income from the corporation (or loss) pass through to you and you will pay the tax. An inc is what you need and in New York, you need to have the same number of directors as shareholders, (in this case 1 and 1) This is the simplest and least expensive. There is a yearly franchise tax payable to NYState. The LLC is much more complicated and not necessary for you . If you need help in forming these entities, call the NY Bar Association Legal Referral service which has a wonderful panel for business lawyers and will recommend an attorney who you can consult with for a small fee.($35.00)

Is there anything else I can help you with? Thank you for allowing me to help you with your question. Please press the "accept" button so I may be credited and paid for my time. Positive feedback is always appreciated .This answer is for informational purposes only and does not constitute legal advice. Nor is an attorney-client relationship established. Thank you very much.

Customer: replied 4 years ago.

one more follow up question: since its a separate entity, how would be allowed to access any of the monies made/profits from the busienss for personal use? do i have to wait until the end of the year? or should i pay myself a small fee monthy as a "salary'? thanks

 

Expert:  NYLAWLADY replied 4 years ago.
Once you have established officers and directors, of which you be for argument's sake, the president, you can pay yourself a salary on a regular basis, plus pay any expenses. I sincerely XXXXX XXXXX that now, from the beginning you have all this set up with a business lawyer who will be able to set you up and better advise on your individual tax issues as concerns the business, Please let me know if you need anything further.

Thank you very much for having allowed me to assist you. It would be greatly appreciated if you would click the green Accept icon so that I can receive credit for having assisted you. Positive Feedback always appreciated. These responses don't create an attorney client relationship.

NYLAWLADY, Attorney
Category: Business Law
Satisfied Customers: 814
Experience: 15 YEARS IN PRIVATE PRACTICE BUSINESS COMMERCIAL LITIGATION
NYLAWLADY and 6 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.
thank you. i have accepted.
Expert:  NYLAWLADY replied 4 years ago.
your welcome

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