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You can set up a corporation online without a lawyer by using a site like the one below. It is fairly easy to do.
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You can use an LLC to run this business. It will protect your personal assets and home from any liabilities that arise out of the business. An LLC is called a limited liability company. It will also give you flow through taxation so that you only pay tax on your business income one time.
No, you will still have to file quarterly taxes as well as State taxes, etc.
What we are talking about is federal income tax that is owed on the money that the business makes. Normally, for example, Exxon corporation shareholders would pay taxes 2 times on the income that Exxon earns. Exxon itself would file a tax return and the Exxon shareholders would also pay taxes on the dividend income that they receive.
Here, if you open an LLC, your LLC income can be treated as sole proprietorship income and thus you only pay tax on it one time:
1. yes, correct
2. almost correct: Yes, the C corp pays income tax twice and files paper work twice. An LLC can get away with only paying tax on the income one time. Still may have added paper work with LLC.
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