Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I am an internet marketing specialist, should I form an LLC…

Customer Question
I am an internet...

I am an internet marketing specialist, should I form an LLC or C corporation for the lowest tax liability?

Accountant's Assistant: The expert will know how to help. Please tell me more, so we can help you best.

My business is in California.

Accountant's Assistant: Is there anything else the expert should be aware of?

I'm retired, very low tax liability.

Submitted: 9 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 1 minute by:
8/5/2017
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 9 months ago
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,408
Experience: Certified Public Accountant
Verified

Hi, my name is Mark. I will be happy to help you with your questions. How well do you expect the LLC do you?

Ask Your Own Tax Question
Tax Professional: Mark Taylor, Certified Public Accountant (CPA) replied 9 months ago

If you own 100% of a LLC it would be reported as a schedule C on your individual tax return. The net income from the LLC would be subject to both income and self-employment taxes. Self-employment taxes would be 15.3% of the first $118,500 of earned income. If you formed a C-Corporation you would be subject to two levels of taxation. The net income from the Corporation would be taxed. Then when the income is distributed to you it would be taxed again as a dividends. You would be able to control the amount of income by paying yourself wages. So with a C-Corporation would would have some additional administrative responsibilities. You would need to file a separate tax return (Form 1120) and you would need to file payroll tax reports (941, 940, w2's, w-3, and state reports). California has a minimum tax for both LLC and C-Corporation of $800. This fee is waived in the first year.

Ask Your Own Tax Question
Was this answer helpful?
Ask Mark Taylor Your Own Question
Mark Taylor
Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 2,408
2,408 Satisfied Customers
Experience: Certified Public Accountant

Mark Taylor is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
On schedule c-ez ,I gave my tax accountant the wrong figure
On schedule c-ez ,I gave my tax accountant the wrong figure amount on my self employtment. I needed 3 credits to quafily for social security and came up short by $58.24. I just need to claim $100.00 l… read more
Dr Arthur Rubin
Dr Arthur Rubin
Doctoral Degree
24 satisfied customers
LLC entity is formed in USA (State of NJ) and the only
LLC entity is formed in USA (State of NJ) and the only Member that is listed on Certificate of Formation is a foreign Corporation (in Latvia). How this USA based LLC should file its year end taxes? It… read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
If I'm filing an extension on my tax individual tax return
If I'm filing an extension on my tax individual tax return and don't know my tax liability, payments, balance due, or amount I'm paying for 2017 on the "Part II Individual Income Tax" section - what s… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,132 satisfied customers
Should i use Schedule C, or Form 2106 for my home office
Should i use Schedule C, or Form 2106 for my home office expenses? i work as a salaried employee 5 days a week out of a dedicated home office, which is for the convenience of my employer. I wish to cl… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,244 satisfied customers
Since some of my income is from self employment do I still
Since some of my income is from self employment do I still not have to file taxes at a annual income of $11,000.? … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,244 satisfied customers
Do i pay income tax,on dividends on stocks,if they are
do i pay income tax,on dividends on stocks,if they are rolled over into more stocks. Or when i withdrawl, from my stocks… read more
abci168
abci168
Principal
27 satisfied customers
I have a tax liability with the State of Wisconsin. Can the
I have a tax liability with the State of Wisconsin. … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I am a self employed with schedule C Income, I over
I am a self employed with schedule C Income, I over contributed SEP in 2015 and 2016 return. How can I correct this error? My SEP( is just a savings account) custodian bank said it is too late to corr… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,244 satisfied customers
On MD state form, you said Md net income was $12k+; last
on MD state form, you said Md net income was $12k+; last yr's form (2106) sd $27k+.. saw nowhere to compare or correct. Husband died 9/15/16. My first time filing single in over 30 yrs. Question was a… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
My 2017 self employment net income was $52,651 and my wife's
My 2017 self employment net income was $52,651 and my wife's was $6,714. How much can I shelter in my IRA?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
For the form schedule C; line 27b. is that the amount i put
hello, for the form schedule C; line 27b. is that the amount i put for the excess of start up costs that im not allowed to claim in the first year? Therefore, the remaining amount i have to amortize/d… read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
Can a married LLC Partnership file schedule C on their 1040
Can a married LLC Partnership file schedule C on their 1040 with their W2 income? And if so if they fie separate sch C how do they go about it? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,132 satisfied customers
Need to walk through local earned income tax form. Did turbo
did turbo tax for federal and state,, trying to understand berkhiemers form for the local earned income,, moved from pa. to florida on july 1, 2017 … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Single member LLC filed schedule C for the last two years
Single member LLC filed schedule C for the last two years and now wants to be an S Corporation for tax year 2017.Is 1120S simply filed with form 2553 with "INCLUDES LATE ELECTION(S) FILED PURSUANT TO … read more
Carter McBride
Carter McBride
LLM
1,078 satisfied customers
Taxpayer amended 2015 tax return to report schedule C
Taxpayer amended 2015 tax return to report schedule C income. Note schedule C was never file on original return. Can taxpayer claim Sec 179 deduction on the amended return for 2015… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,244 satisfied customers
I'm confused when income should be on a schedule C and/or
I'm confused when income should be on a schedule C and/or reported on Schedule SE. I'm a musician that gets 1099 for gigs and teaching in addition to W-2s. I was told that expenses used on Schedule C … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,244 satisfied customers
Ministers Housing/Self-Employment After form 4361 is
Ministers Housing/Self-Employment After form 4361 is approved by IRS, I need to go back and file form 1040X to amend my return, where I paid self-employment tax.Let's say form SE showed $5,000 in self… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Would the estate pay self employment taxes on the income
Richard,Would the estate pay self employment taxes on the income before the beneficiaries are determined? For instance if it takes the court 2 years to say the parents are the beneficiaries. How is th… read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x