July 14, 2012 Leave a comment
Good evening Internet world this is my first post. Being my first post I figured I would take about the first step I took in securing my future. The first thing I did before I even thought about creating Apps was to start a company. I used LegalZoom to start my LLC in three easy steps you will be able to reap the benefits of having my own business. There are many advantages to having your own company. Besides the tax write offs , you will also be able to write off your internet and computers. Here are a few more examples of why starting your own business if a great idea.
A standard corporation is treated as a single entity that must pay taxes on the revenue it generates, and then the corporation owners must pay taxes on that revenue again in the form of income tax, according to online small business resource Gaebler. In an LLC, the distribution of revenue is treated as in a partnership. The LLC is not considered a single entity but rather a collection of individuals. Revenue generated by the LLC is passed through to the individual owners based on the agreement created when the LLC was incorporated, and the owners then pay tax on that income. There is not single-entity revenue tax with an LLC. This allows the LLC to avoid the double taxation that occurs with a standard corporation.
One of the primary benefits of an LLC is that the owners have limited liability for the business’s decisions. If the business owes debts or is sued, the owners do not have to pay for those debts out of their own pockets. Sole proprietors and members of partnerships are liable for business debts, so if a sole proprietorship or partnership goes out of business, the owners might be saddled with a large financial burden that could lead to personal bankruptcy. Members of LLCs and corporations are protected from business debts.
According to the U.S. Small Business Administration (SBA), the income earned by an LLC flows to the members and taxes on the income are paid through the personal income taxes of the owners. In other words, an LLC is not taxed as a business entity separate from the owners, as is a corporation. This gives the business flexibility to distribute income to owners as they please.
Again I can not stress enough how important it is to start a company. Even if your just a blogger you can use a LLC as a tax advantage, that is unless you like to pay taxes. Again be sure to check out LegalZoom to get started today, also be sure to check out my resources page for links to other great products or services to make you successfully reach you “Permanent Holiday”