Is the Gov anti-small business? - Honda Motorcycles - FireBlades.org
Off-Topic Discussion of anything that doesn't fit anywhere else. If it's related to motorcycles in any way, DO NOT post it here. Post it in General Discussion or a more specific forum.

User Tag List

Reply
 
LinkBack Thread Tools
post #1 of 30 Old 11-02-2005, 12:46 PM Thread Starter
 
rocket's Avatar
 
Join Date: 10-11-2003
Location: VA
Posts: 1,250
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 18
   
Is the Gov anti-small business?

Major hoops to jump through starting a business. Corporation Commission, State licensing, County Licensing, IRS, State tax, County Tax, FUTA ,SUTA, FICA... geez. There has to be a better way to encourage people to venture out on their own.

For those of you that have started their own business what questions should I ask my CPA when I meet with him today? I went with an LLC because it sounded right at the time but now I think an S Corp might be the way to go. So many things to think about and that's not including doing actual business.

The upside is I will probably haul in more $$$ and the freedom that owning your own company affords you. I would do it again but I'd probably would have put more thought into it at the front end.

I came here to chew bubble gum and to kick some ass...and I'm all out of bubble gum.
rocket is offline  
Sponsored Links
Advertisement
 
post #2 of 30 Old 11-02-2005, 12:53 PM
I found the cure for hope
 
Sunbert's Avatar
 
Join Date: 09-01-2004
Location: Millersburg, MO
Age: 43
Posts: 1,374
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 22
           
Send a message via Yahoo to Sunbert
Re: Is the Gov anti-small business?

I feel your frustrations. I set up an LLC and actually haven't talked with anyone that set up an S Corp. I'm going to try to meet with an accountant this week because I don't know how to handle my investors. Let me know if you find out anything interesting.

peas to the kilometers
Sunbert is offline  
post #3 of 30 Old 11-02-2005, 12:55 PM
 
Join Date: 02-07-2002
Location: UT
Posts: 10,531
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Reputation Power: 46
                     
Re: Is the Gov anti-small business?

Easier to hide assets from lawsuits and such with an LLC, as long as you don't have a bunch of partners.
The whole tax side is crap, though.
BDA116 is offline  
Sponsored Links
Advertisement
 
post #4 of 30 Old 11-02-2005, 1:02 PM Thread Starter
 
rocket's Avatar
 
Join Date: 10-11-2003
Location: VA
Posts: 1,250
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 18
   
Re: Is the Gov anti-small business?

SB,
Here's a comparison of LLC vs. S Corp that I looked up while I was in decision making mode. http://www.powerhomebiz.com/vol136/structure.htm Semi informative.

I will most definitely get back to you. I'm hoping he recommends sticking with an LLC b/c it is a PITA to change ( I went from a regular sole proprietorship to an LLC a couple months ago). Even within an LLC there are decisions to be made for tax purposes...a sole proprietorship LLC , a partnership LLC, and a corporation LLC.

I came here to chew bubble gum and to kick some ass...and I'm all out of bubble gum.
rocket is offline  
post #5 of 30 Old 11-02-2005, 1:21 PM
 
sheepofblue's Avatar
 
Join Date: 07-12-2004
Location: Huntsville AL
Posts: 14,224
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 48
                     
Send a message via AIM to sheepofblue
Re: Is the Gov anti-small business?

Wait until you realize that the government has a higher margin on your work than you do

Must obey the sheep dog
sheepofblue is offline  
post #6 of 30 Old 11-02-2005, 1:23 PM
 
Join Date: 05-09-2003
Location: Ann Arbor, Michigan
Posts: 4,804
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 1 Post(s)
Reputation Power: 35
                   
Re: Is the Gov anti-small business?

Some differences vary from state to state. Michigan was late to the party allowing LLC's, but they afford most (if not all) of the protection of an S-Corp, cost less to set up, and the income flows through your personal return.
My lawyer and accountant look at them as being functionally equivalent.

The only reason that you would ever want to change it is to get a C-corp status, but that's a whole different animal, tough and expensive to convert from an S to a C as well.

And the "freedom that owning your own company affords you ?" Hmmm.
A good friend called me yesterday from Irvine, CA where he owns a photography studio. He owns his own business, but 16 year old girls are making decisions as to which photog to use for dances, sports, and yearbook.

So he's literally working for them.


Hey, Abtech! How many letters in the word "partner?"

If by being violent you mean Islam prescribes expansion of its rule through warfare and is therefore violent then so be it. - SPDUDE
See you at Grattan June 25-27 2007 !
Email me for info.
CBRVFR is offline  
post #7 of 30 Old 11-02-2005, 1:45 PM Thread Starter
 
rocket's Avatar
 
Join Date: 10-11-2003
Location: VA
Posts: 1,250
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 18
   
Re: Is the Gov anti-small business?

Quote:
Originally Posted by CBRVFR
Some differences vary from state to state. Michigan was late to the party allowing LLC's, but they afford most (if not all) of the protection of an S-Corp, cost less to set up, and the income flows through your personal return.
My lawyer and accountant look at them as being functionally equivalent.

The only reason that you would ever want to change it is to get a C-corp status, but that's a whole different animal, tough and expensive to convert from an S to a C as well.

And the "freedom that owning your own company affords you ?" Hmmm.
A good friend called me yesterday from Irvine, CA where he owns a photography studio. He owns his own business, but 16 year old girls are making decisions as to which photog to use for dances, sports, and yearbook.

So he's literally working for them.


Hey, Abtech! How many letters in the word "partner?"
Good info.

I hear ya, the customer is always the boss! I guess the freedom I am referring to in my type business is that I can pick and choose which jobs I take and I don't have a boss (besides the customer and Uncle Sam ).

There are pros and cons in anything you choose to do.

I came here to chew bubble gum and to kick some ass...and I'm all out of bubble gum.
rocket is offline  
post #8 of 30 Old 11-02-2005, 1:46 PM Thread Starter
 
rocket's Avatar
 
Join Date: 10-11-2003
Location: VA
Posts: 1,250
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 18
   
Re: Is the Gov anti-small business?

Quote:
Originally Posted by sheepofblue
Wait until you realize that the government has a higher margin on your work than you do

I came here to chew bubble gum and to kick some ass...and I'm all out of bubble gum.
rocket is offline  
post #9 of 30 Old 11-02-2005, 1:57 PM
 
luvtolean's Avatar
 
Join Date: 08-01-2001
Location: Lost
Posts: 14,390
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 45
                 
Re: Is the Gov anti-small business?

Quote:
Originally Posted by sheepofblue
Wait until you realize that the government has a higher margin on your work than you do
Bah, of course they do. They have no money/time in your business, but extract taxes from it.

That statement is true of anyone in a tax bracket beyond the ones that get more money back than they pay in.




...in bed.
-------------------------------------

...you are trying to insult me, and I agree it is very easy to do, if you haven't sufficient respect for yourself. - Tolstoy
luvtolean is offline  
post #10 of 30 Old 11-02-2005, 3:42 PM
 
sheepofblue's Avatar
 
Join Date: 07-12-2004
Location: Huntsville AL
Posts: 14,224
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 48
                     
Send a message via AIM to sheepofblue
Re: Is the Gov anti-small business?

Quote:
Originally Posted by luvtolean
Bah, of course they do. They have no money/time in your business, but extract taxes from it.

That statement is true of anyone in a tax bracket beyond the ones that get more money back than they pay in.
No the point was if you profit margin is 10% taxes are much higher. Thus on any dollar spent after bills are paid the amount you put in your pocket will be lower than your tax rate.

Must obey the sheep dog
sheepofblue is offline  
post #11 of 30 Old 11-02-2005, 5:08 PM
 
luvtolean's Avatar
 
Join Date: 08-01-2001
Location: Lost
Posts: 14,390
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 45
                 
Re: Is the Gov anti-small business?

If your profit margin is 10% in a small business, you're going out of business, so the point is moot.




...in bed.
-------------------------------------

...you are trying to insult me, and I agree it is very easy to do, if you haven't sufficient respect for yourself. - Tolstoy
luvtolean is offline  
post #12 of 30 Old 11-02-2005, 5:26 PM
 
phobiaphobe's Avatar
 
Join Date: 05-23-2004
Location: Omnipresent
Age: 37
Posts: 11,499
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 43
                     
Send a message via MSN to phobiaphobe
Re: Is the Gov anti-small business?

Quote:
Originally Posted by luvtolean
If your profit margin is 10% in a small business, you're going out of business, so the point is moot.
10% net? That's pretty not bad if you ask me.

And then there's this asshole...
phobiaphobe is offline  
post #13 of 30 Old 11-02-2005, 5:30 PM Thread Starter
 
rocket's Avatar
 
Join Date: 10-11-2003
Location: VA
Posts: 1,250
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 18
   
Re: Is the Gov anti-small business?

Quote:
Originally Posted by Sunbert
I feel your frustrations. I set up an LLC and actually haven't talked with anyone that set up an S Corp. I'm going to try to meet with an accountant this week because I don't know how to handle my investors. Let me know if you find out anything interesting.
Well I just got back from the CPA and I'm glad I went with the LLC. Since I'm my company's sole employee I probably don't have to pay SUTA and FUTA.
With the S Corp you have to pay yourself a salary where with an LLC you can take draws from the company . The only thing I pay taxes on is net income. There are of course drawbacks to the LLC route but for now I'm sticking with it.

I came here to chew bubble gum and to kick some ass...and I'm all out of bubble gum.
rocket is offline  
post #14 of 30 Old 11-02-2005, 5:31 PM
 
sheepofblue's Avatar
 
Join Date: 07-12-2004
Location: Huntsville AL
Posts: 14,224
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 48
                     
Send a message via AIM to sheepofblue
Re: Is the Gov anti-small business?

Quote:
Originally Posted by phobiaphobe
10% net? That's pretty not bad if you ask me.
My point exactly why a 10% net would be decent 10% taxes is jailable

Must obey the sheep dog
sheepofblue is offline  
post #15 of 30 Old 11-02-2005, 5:39 PM
 
luvtolean's Avatar
 
Join Date: 08-01-2001
Location: Lost
Posts: 14,390
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 45
                 
Re: Is the Gov anti-small business?

Quote:
Originally Posted by phobiaphobe
10% net? That's pretty not bad if you ask me.
Let's do the math.

10% of $1,000,000 yearly gross is $100,000. If you then pay taxes on that, you're at what I consider a normal living wage. (comfortable, but you're not buying any Ferraris)

I'd say roughly half of my friends are self employed and only one or maybe 2 has ever grossed over $1mil.

Several gross well under ½mil and in CA $50k is peanuts.




...in bed.
-------------------------------------

...you are trying to insult me, and I agree it is very easy to do, if you haven't sufficient respect for yourself. - Tolstoy
luvtolean is offline  
Reply

  Lower Navigation
Go Back   Honda Motorcycles - FireBlades.org > Other > Off-Topic

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Honda Motorcycles - FireBlades.org forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
A valid e-mail address is REQUIRED. You will not have access to any site features until you activate your account using the activation e-mail that is sent to this address.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Similar Threads
Thread Thread Starter Forum Replies Last Post
Where's the anti-Bush contingent on the Haiti issue? Baketech Politics 45 03-06-2004 6:16 PM
Small Business Question symonjester Off-Topic 20 02-04-2004 1:27 PM
Phone System for Small Business Baketech Off-Topic 10 02-02-2004 7:53 AM
Federal Gov DO NOT CALL List BizJetGuy Off-Topic 12 07-07-2003 8:53 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

 
For the best viewing experience please update your browser to Google Chrome