LLC, Inc. or Sole Proprietor??

chp · 08-06-2009, 11:21 AM

Hey guys and gals,

I have my own agency named Carolina Health Plans here in SC. I set it up when I went indy about a year and a half ago. When I set it up I did it as a sole proprietor. I am wondering if I should have an LLC or something along those lines.

What are the advantages of incorporating, or having an LLC? I assume liability is one big reason......

Any thoughts on this? What have most of you done. Also, what is the best route to do this? I assume I can have my CPA do it, but he charges and arm and a leg. Legal Zoom or something like that?

Thoughts?

Thanks, Mike

Charpress · 08-06-2009, 11:30 AM

The big difference is that right now you have to do a Schedule C and all income is subject to SS taxes.

You need to run all your numbers by a CPA to see if running the same income through a properly set up LLC will allow you to save money. Simple as that.

chp · 08-06-2009, 11:48 AM

Thanks for the info..I will run it by him.

annuityseller · 08-06-2009, 03:41 PM

You must understand for the LLC to work you take a weekly salary and at the end of the year you can bonus yourself the money left over with out paying SS taxes on that sum (which is 15%) I think. here's the disclaimer I'm not a cpa or tax planner.

moonlightandmargaritas · 08-06-2009, 03:50 PM

Originally Posted by annuityseller

here's the disclaimer I'm not a cpa or tax planner.

That's sorely obvious, as you are incorrect.

healthagent · 08-06-2009, 03:58 PM

LLC Partnership Incorporation Sole Proprietor