Nyc S Corp,llc

[Nykko]

s About Taxes)/NYC S CORP,LLC Advertisement Expert: Richard Fritzler - 6/22/2009 I have just read one of your responses, but need it clarified for my situation. A Manufacturer's Rep out of NYC, wants to know S Corp vs LLC, AND if it will benefit for him to incorporate outside NY. Am foggy on what you explained about the S COrp and NYC handling of income. BEST tax rate. Only one person/shareholder setting up this entity.

[Cort]

Having answered a few thousand Q's over the last 5 years, I don't recall that one.

The S corp/LLC discussion is similar to asking if it would be better to ride an ass or a mule if you were racing in the INDY 500. There could be much discussion about the differences between the beasts, and one could probably, with great research, and review determine one to be better than the other. Completely missing the important point that neither will be sufficient to WIN THE RACE.

Both the S corp and LLC are pass through entities. While one could argue that the S corp might reduce some portion of the payroll taxes under certain circumstances, neither provide a real tax advantage.

Both make claims to limit liability, but neither has been PROVEN to do so. Both have shown failures.

For tax purposes, both will drop ALL of the net income to the stockholder and that "one person/shareholder " will be responsible to pay their personal tax rates on ALL the money.

If you were a NON-NY resident owner of an S-Corp or LLC, operating in NY, the State of NY will apply a tax to the profits, so you'd still pay the NY taxes.

If you are looking to lower the taxes in NY the most effective way is:

Don't make a profit.

Then your taxes will be zero. This applies whether you are an S-corp, an LLC, LP, LLP, LLLP, General Partnership or Sole Prop.

If you fail to make a profit because your costs to operate are about equal to your income, and part of your costs of operation are to a real corporation in Nevada, that provides a reasonable and necessary business service, and that real corporation in Nevada is profitable; THEN the taxes will be much much much, lower.

At this point you have a lot more questions and I can only guess at them. So. . . call me.

Richard Fritzlerhttp://www.owelesstax.comhttp://www.nevadacorporateservices.com

phone 800 590-6612