Form A Llc
How can I form an LLC with a partner, and not be double taxed?
My partner and I want to start a new company, and LLC seems the most logical. We want to have it be a passthrough – meaning no double taxation but we also do not want to have to be classified as self-employed. We want to be employees of the company. Is this possible? If not, is S-corp a better option? Any insight is appreciated.
I will be doing so in Wyoming.
by nature, with LLC you would not be double taxed, as you claim your taxes on your personal income tax. If its jsut the 2 of you starting a company, go with LLC – if/when company grows large and you fele the need to change, you can always change to the next best thing – S corp. Have an accountant, who will keep your books, and pay out quarterly salaries to each of you. Of cours,e if there is a need co eollect tax on your product/service, make sure you apply for tax certificate and collect and pay quarterly taxes. Go to below sites for step by step explanations, and to save yourself a headache, use one of them for your registration. incorporate.com is a bit cheaper, but both offer great and timely service.