If I am starting a very small cosmetic company would it be more ...

Question by Sasa: If I am starting a very small cosmetic company would it be more beneficial to be sole proprietor or LLC?
If I am starting a very small cosmetic company would it be more beneficial to be sole proprietor or LLC? How much more do i have to pay in tax if i am a LLC? Do I have to pay taxes if I am an LLC even if i didn?t make much income for this side business?

Best answer:

Answer by CFPwunaB
It depends on how you set up the LLC. With an LLC you can elect to either be taxed as a sole-proprietor OR as a corporation. In 95%+ cases you will pay more taxes if you elect to be taxed as a corporation, so it usually doesn?t make sense. If you elect to be taxed as a sole-proprietor you will likely face less taxes, but I can?t say for sure without knowing your entire financial position.

In most cases, the greatest benefit to becoming an LLC rather than a sole proprietor is the legal protection LLC?s provide. Generally, if your LLC is sued the person sueing it can only recover the assets that belong specifically to the LLC, whereas if you are a sole proprietor, the person can recover all of the company?s assets as well as all of your own personal assets (house, car, desk, computer, iPod, etc.)

Give your answer to this question below!

Tagged as: beneficial, company, Cosmetic, More, proprietor, small, sole, starting, very, would

Source: http://cosmetics.healthlook4you.com/if-i-am-starting-a-very-small-cosmetic-company-would-it-be-more-beneficial-to-be-sole-proprietor-or-llc/

chris morris mike stoops mike stoops end of the world end of the world jerome harrison ryan leaf