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Im an Independent broker in California

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with 2 locations 6 employees...
Im an Independent broker in California with 2 locations 6 employees. Should I S-corp, LLC, or C-Corp?
Submitted: 3 years ago.Category: Tax
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6/2/2015
Tax Professional: emc011075, Tax adviser replied 3 years ago
emc011075
emc011075, Tax adviser
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Satisfied Customers: 3,790
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Hi. My name is ***** ***** I will be happy to help you.
It depends how much do you want to complicate your taxes. The easiest form would be sole proprietorship, but it will not give you any liability protection from credits. Profits and looses will be reported on your personal tax return, subject to self-employment tax.
You can register single member LLC, it will be still taxed as sole proprietorship but it will give you limited liability protection from creditor.
As LLC you can also choose to operate as S-corp or C-corp. If you choose any of this options you will have to treat yourself as employee of the corporation, meaning you will have to pay yourself reasonable salary and deal with the payroll. As S-corp (path-trough entity), all your profits and looses will be tax on your personal tax return, there will be no tax on corporate level. If you choose C-corp, all profits will be taxed on corporate level and than again as distribution to you (double taxation). You will not be able to offset your income with the corporate losses.
Here's a chart of entities for tax purposes: http://www.nolo.com/legal-encyclopedia/ways-to-organize-your-business-chart-30065.html
Unless you want to corporate perks like 401K, profit sharing and such, I would suggest to start as single member LLC and you can elect S-corp or C-corp later if you want.
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Customer reply replied 3 years ago
sorry . I wanted to ask the Insurance Expert. How can I find him again
Tax Professional: emc011075, Tax adviser replied 3 years ago
You had it posted under tax, not insurance. Let me contact customer service for you.
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Customer reply replied 3 years ago
I saw he was online and I asked him the question. He was an insurance agent and tax expert
Customer reply replied 3 years ago
Not your fault. I thought I was talking to him
Tax Professional: emc011075, Tax adviser replied 3 years ago
I don't know why it still showed online but he didn't participate in this forum since April 2014 that's why the question was released to other experts. I already contacted customer service to send your question to different category. If you post a specific question, maybe somebody else will be able to help you.
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Customer reply replied 3 years ago
I tried to call them but they hung up me. What the best way to contact them?
Tax Professional: emc011075, Tax adviser replied 3 years ago
Experts do not have direct access to customer service. I already sent a request, they should contact you soon. Sorry for the inconvenience.
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Customer reply replied 3 years ago
ok thank you
Tax Professional: ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions. replied 3 years ago
ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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