# LLC - Cost??? merged



## Canyonbc (Apr 19, 2007)

Hello

Has anyone here gotten a LLC, and if so what did it cost to get and who did they go through, would you recmond that company?

Thanks Mike

email [email protected]


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## Climb020 (Apr 19, 2007)

Here is who I used Biz Filing. I cannot say anything at this time about it being I am still in the process. I was told that it would have been much cheaper to file everything myself but would rather have someone else make sure it is all right. They were very helpful though being they have a live chat.


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## kevknep (Apr 19, 2007)

My company is a LLC and it didn't seem that hard. We first registered a fictitious name with the county and then applied for a county business license. We download a LLC form from the government web site, and if I remember correctly it was a single page with only about 5 or 6 questions. We were able to get our Employer ID number online. The whole process only took a couple of weeks and probably cost less than 300 dollars.

This site looks like it might have info. you need for your particular state.

http://www.ss.ca.gov/business/filings.htm#LLC


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## PA Plumber (Apr 19, 2007)

I think mine was around $550.00. I used an attorney and I didn't have to do much. He took care of all the details. I currently use "S" filing status and everything flows through our personal income taxes. One biggy though, I can't get workman's comp on myself, even though I am the sole employee. If I had any employees, they would have workman's comp under state law.


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## Canyonbc (Apr 19, 2007)

Alright cool
thank for the help from everyone 

PA Pennslyvania...

your self employeed...along with myself..

what type of lawyer did you see to get your llc ?

mike


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## PA Plumber (Apr 19, 2007)

Yep, Pennsylvania.

He is a tax/business attorney. He sets up companies, helps people purchasing/selling businesses and tax escape (oops, I meant tax planning/sheltering.) :monkey:


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## PA Plumber (Apr 19, 2007)

Another thought on the workman's comp. If you file as an Incorporated, you can not be denied workman's comp in Pennsylvania. There are a lot of tax advantages to being and LLC in PA.


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## Canyonbc (Apr 19, 2007)

Alright cool 

thank you sir...i will look that all up


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## John Paul Sanborn (Apr 22, 2007)

I filed striaght through the WI.go website and it cost moe $120 or so.

I have a client/friend who got an atourny who did a package that cost him around $600 that set him up with sales tax permits with all surrounding counties, W/C and a number of other things.


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## beelsr (Apr 23, 2007)

PA Plumber said:


> Another thought on the workman's comp. If you file as an Incorporated, you can not be denied workman's comp in Pennsylvania. There are a lot of tax advantages to being and LLC in PA.



Such as?


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## PA Plumber (Apr 23, 2007)

beelsr said:


> Such as?



Flow through tax return. Flow through income taxes is the biggy. Social Security (15%) only comes off of the W2 earnings side. Not off of the total income of the business for the year. The rest is taxed at the regular personal income tax rate. Also, I'm "S" status, there is no local tax for the business. Just on my earnings. I'm sure there is some other stuff, but this is all I can remember. If you talk to an accoutant, I'm sure he/she could do a better job of explaining.

I was cautioned about keeping all of the business books separate; which I do.


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## beelsr (Apr 23, 2007)

PA Plumber said:


> Flow through tax return. Flow through income taxes is the biggy. Social Security (15%) only comes off of the W2 earnings side. Not off of the total income of the business for the year. The rest is taxed at the regular personal income tax rate. Also, I'm "S" status, there is no local tax for the business. Just on my earnings. I'm sure there is some other stuff, but this is all I can remember. If you talk to an accoutant, I'm sure he/she could do a better job of explaining.
> 
> I was cautioned about keeping all of the business books separate; which I do.



You're mixing up LLC and S Corp. S Corp allows you to retain income in the business and not pay FICA/Med on it when you pay yourself a dividend. LLC doesn't.

But netiher is treated as a disregarded entity for PA taxes, just Federal. PA state corp taxes are a pain. You are filling out the PA RCT-101 form, right? If you're not, you should ask your accountant.

The other thing that's a kick in the a$$ is that PA Corporate tax rate is 9.9%, which is a wee bit higher than the personal rate of 3.07%.


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## PA Plumber (Apr 23, 2007)

beelsr said:


> You're mixing up LLC and S Corp. S Corp allows you to retain income in the business and not pay FICA/Med on it when you pay yourself a dividend. LLC doesn't.
> 
> But netiher is treated as a disregarded entity for PA taxes, just Federal. PA state corp taxes are a pain. You are filling out the PA RCT-101 form, right? If you're not, you should ask your accountant.
> 
> The other thing that's a kick in the a$$ is that PA Corporate tax rate is 9.9%, which is a wee bit higher than the personal rate of 3.07%.



Spoke with accountant today. My company is an LLC with an S filing. If I understand correctly the "S" does not require FICA/Med on dividends. I think I have a pretty good accounting firm. Hopefully I won't be in jail soon! I do remember filling out paperwork for the "S" filing when the LLC was first started.


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## beelsr (Apr 23, 2007)

PA Plumber said:


> Spoke with accountant today. My company is an LLC with an S filing. If I understand correctly the "S" does not require FICA/Med on dividends. I think I have a pretty good accounting firm. Hopefully I won't be in jail soon! I do remember filling out paperwork for the "S" filing when the LLC was first started.



Hmmmm... One of us is confused because an LLC and S Corp are two separate entities. An S Corp is a special typeof Corporation that allows you to flow all your income through your personal return (well, federal not PA). It's an "ABC, Inc."-type corporation and you file the S Corp election form when you incorporate. An LLC isn't really a "corporation"; the C stands for company. But it is nominally treated as a corporation by most entities.

And yes, an S doesn't pay FICA/Med on dividends. it's one of the big advantages to a small corp. then danger is paying yourself a $1 salary and then a 50,000 dividend. The IRS doesn't like that, considers it abusive and comes after you. But they won't tell you want the proper "split" is.


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## PA Plumber (Apr 23, 2007)

Well... I grabbed my income tax filings from 2006. There is a RCT-101 and a PA-20S/PA-65-S Corp/Partnership Information Return for 2006 also. At the top of both is reads my company name with LLC at the end.


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## Tom_Scheller (Apr 23, 2007)

I'm reading this thread with great interest. I'm in PA and was just about to start looking into S corps and LLCs. I've only spoken to my insurance agent about it. He did confirm that WC is only available for myself as an employee of my own corporation. With an LLC you're still considered an owner (like a sole prop).

I am, however, way more interested in the tax strategies available to each.

Please keep the info coming. Thanks

TS

BEELSR - where in NEPA?
I'm in Madison Twp


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