I have a client who was self employed and then incorporated and elected "S" in order to get some protection for his business. His record keeping is not good and a Schedule C would probably be easier to file. Couldn't he achieve the same thing by simply applying for an LLC for his schedule C business? I'm new at the LLC and don't know much about it. Is this done through the Secretary of State
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In my state the application form can be downloaded - really not very profound to complete. -
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Zeros, help us clear up some confusion.
You say your client "elected S" for protection. Does this mean he filed form 2553 and chose to be a subchapter S corporation?
If so, we should not plan on treatment as a Schedule C, but Form 1120S instead. If you are new with 1120S, you need to plan on some extra time for indoctrination.Comment
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Puh..leeze, Sol
In the interest of our profession, remember the words of famed tax preparer John W. Chargem: "NOTHING is 'no problem'."Originally posted by solomon View Post
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"If you would know the value of money, go
and try to borrow some." -- BEN FRANKLINComment
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I had a client some time ago who incorporated for liability protection and that was all she did. No corp. bank account, did not present herself has corp. to the outside, and so on. Basically just an empty shell, which needed to be dissolved.
Maybe your case is similar?
As far as the question goes about liability and LLC's: It's different in every state, in some states the liability protection is better if they are a corporation, some states don't allow for a single-member LLC.Comment
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Originally posted by Black Bart View Post
Just not profound not necessarily no problem but I don't think it would even be profound for BB.
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