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I am planning on starting a new (small) business in Florida.

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would it be advantageous to...
I am planning on starting a new (small) business in Florida. would it be advantageous to incorporate as an S-Corporation?
Submitted: 6 years ago.Category: Tax
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5/4/2011
Tax Professional: Richard, Tax Attorney replied 6 years ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,796
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good evening. Yes! Either incorporate as an S Corp or form a limited liability company. Either way, they both are taxed as flow-through entities so you won't be taxed twice, and most importantly they provide limited liability, so that if the new entity doesn't make it, your creditors can only look to the assets of the entity and cannot pursue your other assets.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

 

Richard
Richard, Tax Attorney
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Customer reply replied 6 years ago
Excellent - thank you. In addition to the business, I plan to do some unrelated consulting work which I would like to keep entierly separate from the business. Are there any tax advantages to incorporating a holding company with two subsidiaries (one for each business), or just incorporating two individual companies?
Tax Professional: Richard, Tax Attorney replied 6 years ago

You're welcome. You can just form two separate entities. Because you are going to be the sole-owner, you can treat these for tax purposes as disregarded entities and they won't have to file their own tax returns...you can simply report the operations of these entities on Schedule C.

 

 

Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55,796
Experience: 29 years of experience as a tax, real estate, and business attorney.
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