Getting Started Business
Setting Up , Part One – Getting Started
1 You just bought your first software and it home. You have been in the business for many years
and think that you can easily reach your customers and customers. The charming nature of the easy step interview is
calling you and you assure yourself that you just need to follow the hints and you will have a foolproof QB file in no
time. You are not sure about Charts of Accounts and you remember to file as an LLC, but not sure if you are
considered sole proprietorship or partnership, or S Corporation or C Corporation. Stop, etc.!
Setting Up , Part One – Getting Started
Fraudulently, because when
you start entering information and are not 100 sure you are giving it the right position, you can actually make your
QB file wrong, and take it from someone else. Straightens people’s QB, better get some help first Some information
will not get the desired results and you run the risk of being inaccurate outside of it. Re-enter your file completely.
This article and the next few articles will help you move beyond the use of simple step-by-step interviews and
provide you with the information you need to build your QB file successfully.
First things first.
Setting Up , Part One – Getting Started
Imagine, if you want, four square boxes, or draw it if you want. In the upper left box, type in lowercase, sole
proprietorship. In the lower left, again in lowercase, write the contribution. Type S-Corp in the top right box and C-
Corp in the bottom. Each of these types of businesses can be considered an LLC. LLC is just a legal position that has
been added to the tax position of one of the four.
very difficult for anyone to collect anything. Lawyers generally do not want to mess with the LLC, regardless of the
Setting Up , Part One – Getting Started
tax position. This would be bad news for a lawyer who wins or loses a case. If he loses, that’s bad enough, but if he
wins, the judge can appoint him as the LLC’s designated ‘partner’, which means that if your company needs to
expand, you can build your new one. The ‘partner’ may need to pay the money you or other ‘partners’ put in, and will
have no choice but to cough it up. But if you do really well this year, you can send K-1 to your new ‘partner’ whose
income you never paid him and he will have to pay tax on the income you ever paid. Did not So trust me, a lawyer
doesn’t want to mess with you, unless you’ve done something wrong.
A sole proprietor is an owner, and at the end of the year the tax is filed with a simple Schedule C and it is a much
cheaper alternative tax preparation than any of the other three options. Taxes can be filed with your personal 1040 until April 15.
Partnerships Two or more people run the same business.
It is
Setting Up , Part One – Getting Started
important to get accurate information about the percentage of shares in each partner’s business so that at the end of
A corporation tax that you prefer as a partnership or sole proprietorship is a one-time tax on the amount of income
you take after you pay the expenses. This is a better arrangement than C-Corp, which allows you to tax your business
income once and then on the money you set aside for yourself when you withdraw money to pay your salary. (It can
Contact me.) Being a S or C corporation means your tax
return is on March 15, not April, so you It has to be ready a month in advance. Other. The form entered is 1120 or 1120S and it is the most expensive of the four options.
Setting Up , Part One – Getting Started
Secondly, which is best for your company?
It’s up to you to decide which is right for you. If you are working in a field that is ripe for litigation, construction,
repairs, etc., I would recommend S-Corp or C-Corp to protect your personal assets. If you are working in the service
industry, a sole proprietorship or partnership may work better. If you want an extra piece of security against those
who see lawsuits as their inherent right to win the lottery, add it now by all means!
But if you’re just starting out, you don’t have to pay well in the -6 500-600 range so you can prepare your taxes until you find more customers.
