Comments on: When NOT to be a Sole Proprietorship: Forming an LLC or S Corp

By: Small Biz Survival

Small Biz Survival — Wed, 16 Oct 2013 16:47:59 +0000

In reply to STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION). I just happened across this article about the supply of rural attorneys today: Small towns offer big opportunities for attorneys. They list 12 Nebraska counties that have zero attorneys presently.

By: Becky McCray

Becky McCray — Sat, 12 Oct 2013 16:13:44 +0000

In reply to STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION).

Steven, I appreciate your input. I agree that it is smart to consult a professional.

The complicating factor for rural, remote and small town businesses is access. You may have several attorneys in town, or none. You may be hours from the nearest attorney. Likely, you don’t have a local attorney who specializes in business and tax issues. That doesn’t mean it’s smart to go without help, only that it’s not as easy to find as it is in the big city.

Ultimately, it’s up to every one of us to do our homework, consult with professionals, and make our own decisions.

By: STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION)

STEVEN J. FROMM, ATTORNEY, LL.M. (TAXATION) — Sat, 12 Oct 2013 14:02:16 +0000

This is great information but from my perspective as a tax/business attorney it is always prudent to sit down with an experienced and savvy attorney to get this right at inception. There are just too many variables and the facts of each particular situation really matter when it comes to choice of entity considerations. Also, in a state like PA, the state and local laws should be considered before any choice is made. Our state has something called a capital stock tax and our City of Philadelphia also has a Business Privilege Tax. Get legal help BEFORE you form any entity is my advice to your readers.

By: Becky McCray

Becky McCray — Wed, 06 Jul 2011 19:47:08 +0000

Patrick, thanks for coming back after a year for a follow up comment. I’m glad to see you back. As business owners, we are ultimately responsible for every decision.

By: Patrick Palmer

Patrick Palmer — Mon, 04 Jul 2011 04:31:55 +0000

Actually, I would rather trust my accountant and attorney than make the wrong choise. My “Make my own decision” choice would be wrong.

By: Becky McCray

Becky McCray — Wed, 21 Apr 2010 03:36:06 +0000

Patrick, know what you plan to do with your business, review the options and advice, and make your own decision. That’s my advice. Good luck!

By: Patrick Palmer

Patrick Palmer — Mon, 19 Apr 2010 07:01:30 +0000

Both my lawyer and my accountant said that most people form LLC’s when they should REALLY be forming the Sub S Corp. I’m glad I have that advice and will do so sometime this year.

By: Mia Elfassy

Mia Elfassy — Sat, 21 Mar 2009 04:17:00 +0000

This was incredibly helpful. Thank you!

By: Becky McCray

Becky McCray — Tue, 13 May 2008 23:50:00 +0000

J.R., thanks for offering this additional info. I’m glad you shared your expertise.

By: J.R.

J.R. — Tue, 13 May 2008 23:46:00 +0000

Becky, this is good information about business structures. However, there is a return necessary for all entities. A Subchapter S corporation must file an 1120-S. This return requires no tax payment, but provides information to the IRS on the amounts passing through to the owners. Most states have reporting requirements as well. There is a real benefit to the Sub-S in that the income does not require self-employment tax payments.