:Wow: Just Got Approved for a $10k-15k Business Credit Line from American Express for my S-Corp

sayyestothis

sayyestothis

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UltraKombo said:
LLC would be ideal because it offers protections to multiple people involved and limits the liability hence the name is Limited Liability Corp. But it's a bytch to setup and you need a lawyer not just your CPA accountant although a lot of CPAs have the legal knowledge to do it alone.

S-Corp is much easier but you as a person take on more individual liability and risk. If someone didn't like a service i provided they could try in court of law to go after any of my personal assets. But as far as taxes you get a huge benefit from an LLC and a modest benefit for an S-corp to a lesser extent.

There are many pros/cons to cover between them both. But at bare minimum an S-Corp is an easy way to free up extra cash and reduce liability for a small shop where it's just you.

If you got an actual company going that relies on labor and shyt - You'll probably want an LLC. My biz is contractual and services oriented so there's very few circumstances where somebody could sue me because my exposure is limited due to my industry.

I usually provide SOWs (Scope of Work) via e-mail so I could easily win any argument in small claims court. As long as you leave a paper trail an S-corp should be fine and if you don't have a physical business or some type of service where you need liability insurance. That's where it becomes hairy and you lean towards an LLC most likely if you provide a product that could potentially lead to injury of some sort.

Either way you need an accountant and a dedicated one like I have. He takes the management fees out of my personal tax returns. I pay him about $250-500 a year out of my tax refund to manage my personal and S-corp NYS/IRS shyt and handle ad hoc requests and advice. It's a very low cost when you think about what it takes to maintain a good relationship with a CPA you can trust. It's more expensive than H&R Block - But H&R Block doesn't give you what I get from this guy. He's essentially my personal accountant - And when I succeed he succeeds.
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This info is incorrect I'm sorry. Llcs and s corps offer the same "pass thru" taxation. The only business structure that you get double taxed on is a c corp.

Also Llcs are much less expensive to set up and maintain/file returns for.

The LofC is based off your personal assets and credit worthiness. if you get it you are personally guaranteeing it as the signer, not the business entity.
 
Reginald Noble

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sayyestothis said:
This info is incorrect I'm sorry. Llcs and s corps offer the same "pass thru" taxation. The only business structure that you get double taxed on is a c corp.

Also Llcs are much less expensive to set up and maintain/file returns for.

The LofC is based off your personal assets and credit worthiness. if you get it you are personally guaranteeing it as the signer, not the business entity.
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I'm not a CPA so I won't insist, but my CPA told me to start with an S-corp. He has fixed numerous issues with my grandfather's post-mortem estate (nah nikka he wasn't hiding no kinda BIG money -____-) and my mother's current tax issues pretty well. So I've entrusted him with this.

I asked him to quote us on the LLC thing and he said it's gonna get rocky if your partners are not 100% all-in and it should be a handful of people max, we had about 10 potential members so it was too much. There are Chinese LLCs that have a stranglehold on Chinatown property that will never be sold unless a court order forcefully breaks up the entity or calls upon eminent domain. That is how difficult an LLC can get with the wrong terms and conditions.

For a regular everyday dude consulting, S-corp to start. LLC reporting accountability to tax and finance (both state and fed) I hear is more complicated. During slow times, you'll NEED to rely on that co-mingling of funds aspect. The issue with an LLC is the delineation is more clear and you're more liable to get hit with audits to my knowledge. Again - it depends on what situation you're in and looking to get into. Construction company, landscaping biz, something tangible? LLC. Intangible? S-corp most likely to start.

The thing is I don't care about personal guarantee aspect. Because my corp is very limited in scope. I ONLY provide B2B consulting services and I am HIGHLY selective with my clientele therefore have very LOW exposure to potential lawsuits. If you are concerned about liability, provide a tangible product and want to minimize fraud, exposure to personal suits from product failure etc. get an LLC but you'll be paying a higher premium likely. An LLC with no activity throughout 4 consecutive quarters is far more suspicious to tax authorities than an S-Corp.
 
GnauzBookOfRhymes

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LLC is MUCH simpler. Not even close. Less documentation (no stock certs, shareholder/bd. of director meetings, simpler taxation, maximum protection from corp liability).
 
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Reginald Noble said:
Maybe you would :sas2: I am thinking 10 years from now breh



Consulting businesses on their online marketing strategy, it's just a hobby really outside of my full time job in the field. When I get really ramped up on consulting I'll need both the incorporation so that businesses can fill out a W-9 and the credit line to purchase analytics tools and other shyt to service them.



I know it's gonna come in handy when I'm making my moves internationally 5-7 years from now. The key is to get in, let that biz history grow. AMX is accepted internationally and I'm gonna make sure there's no fees associated with this card. BOA had the nerve for my biz checking to charge me a couple cents on the Yen while I was in Japan last year. CACs do this all the time and the Chinese actually do it the best. I met this Chinese dude who had like 3 biz credit cards with like 100k each limit. Those nikkas game the system so well they spank it. His balance was zero because he uses it to buy and flip office real estate and re-sell at a profit. nikkas only thinking about buying rims and shyt these Chinese are buying homes and property, giving it that Ming Empire shine and then re-selling at 2x the market value in some areas in Queens:ohlawd:
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One of the best threads

asians in nyc got the game on smizzash
 
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