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Do you know why a lot of network marketers
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"S Corporation or LLC?" is a common question for new business owners. I have several people call me each week asking this.
I always tell them the question is impossible to answer. And here's why. An LLC is chameleon for income tax purposes. Therefore David Long Color Rush Jersey , an LLC can be anything the owner or owners (who are called members) want the LLC to be聴including an S corporation.
An LLC with one owner, for example, can be a sole proprietorship, a C corporation or an S Corporation. And an LLC with multiple owners can be a partnership, a C corporation or an S Corporation.
I think what people asking "LLC vs. S Corporation?" really want are the answers to two questions:
1. Which legal form should their new business or investment take?
2. What tax treatment should they select for their new business or investment?
Fortunately Darrell Henderson Color Rush Jersey , these questions can be answered聴and quite easily.
To answer the question about which legal form a new business or investment should take, I almost always give the same answer: You probably want to use the LLC because an LLC gives you all the same legal protection as a regular corporation only with half the calories--er, I mean, red tape.
The tax treatment question that people ask is a bit trickier. As noted earlier, an LLC can be just about anything. So making a smart tax treatment decision is tricky and something you'll want to consider carefully. Here are some of the issues to consider:
1. Investments and businesses that produce losses are often best operated as a sole proprietorship or partnership so that the losses pass through to the owner's or owners' tax returns and create tax deductions.
2. S corporations are often best if the LLC operates an active trade or business and self-employment taxes on the owner or owners are high. Note Taylor Rapp Color Rush Jersey , however, that not every business is eligible to become an S Corporation.
3. If an LLC holds real estate or other passive investments, an S Corporation or C corporation is usually a very poor choice since the corporation may create an extra level of taxation.
4. If an LLC operates an active trade or business that does business in many states, a C corporation is often easiest for the owners because a C corporation probably reduces the multistate income tax accounting burden for the owners. Note that multistate tax accounting often becomes very cumbersome for shareholders of an S corporation.
Redmond WA tax CPA Stephen L. Nelson is the author of both Quicken for Dummies and QuickBooks for Dummies and an adjunct tax professor for Golden Gate University聮s graduate tax school.IKT, The Network Marketers Disease ECommerce Articles | August 25 Cory Littleton Color Rush Jersey , 2006
This article explains the IKT (I know that!) disease that hold back a lot of network marketers, and how you can diagnose this disease and cure it!
Do you know why a lot of network marketers never experience success in their career? A lot of times it's because of a disease they have, IKT. What is IKT? IKT is a very contagious disease that is simple to diagnose, but very difficult to treat. As a matter of fact, most people can be told flat out that they have it Robert Woods Color Rush Jersey , but they will remain in denial. And it can't be remedied by any drug or treatment. IKT stands for "I know that".
IKT is a debilitating disease that most of us have. I think I was born with a particularly bad case. I used to attend personal development seminars, hear the guru, and think, "I know that!" And by thinking "I know that", I was essentially dismissing it. The "I know that" complex basically renders the most powerful information useless.
I didn't start to get cured of this disease until I heard one of these guru's telling a story about a security guard he met. This security guard was working nights for $7 an hour watching a building in a resort town. Here is a paraphrase of the conversation as I remember it:
Guru: Have you ever read Napoleon Hill's classic book "Think and Grow Rich"?Security Guard: Yes Eric Dickerson Color Rush Jersey , that book changed my life!Guru: No, it didn't.
Security Guard (offended): Yes, it did!Guru: How?Security Guard: Well? (awkward pause)Guru: Are you going to get rich in your current job?Security Guard: Of course not, this is temporary!Guru: What are you currently doing to apply the principles in Think and Grow Rich?Security Guard: Well, one day I'll find an opportunity Black Rob Havenstein Jersey , and I'll jump on it, and I'll apply everything I learned in the book and I'll be rich.
Sure. What's wrong with this story? The security guard had a bad case of IKT. He thought he knew what the book was about. He was convinced it had changed his life. And yet he wasn't doing a thing about it. "Looking for something" doesn't really count, does it? We all have to be doing something, every day, towards earning financial freedom Black Tyler Higbee Jersey , and if we aren't, we are kidding ourselves. But we feel better if we think we "know" the answers.
Another concept that opened my eyes to my case of IKT was the following quote:
"A wise man researches what a fool takes for granted." (author unknown)Very few people are willing to "drill deep" and truly research any topic, because they already know all about it. And this is where network marketers really struggle. Network marketing is such a simple business in so many ways, that after a few meetings and conventions the novice thinks they know it all. But they don't. Having all the answers and getting an "A" on the test aren't what it's all about. Network marketing actually involves mastering several subjects, all of which require study Black Jared Goff Jersey , trial and error, role- playing, and book learning. Subjects include:
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