Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (3141)	10/17/2001 4:20:41 PM
From: Mark Adams	Read Replies (1) \| Respond to of 24758

The tax savings is sometimes severely limited by the added accounting expense, I know whenever I explored this option for my own business it was a dollar swap. That is also my case. And the basis for my concern about these added costs adding friction. Before these changes, the effective rate of taxation on sole proprietors was close to 60%....try getting ahead with that kind of overhead. I know, firsthand. Had a small schedule c entity for awhile, and learned alot about marginal and effective tax rates. I disposed of the business after learning the ropes. I suspect this cost of doing business, along with occasional poor advise contributes to the high failure rate of small business. BTW- an LLC can be a very flexible cost effective entity. A very good guide to the ins and outs: amazon.com The Nolo series are very good guides for laymen to legal issues. IMO. My primary concern is limited liability, not taxes. The LLC seems to present a lower accounting/legal overhead while offering the ability to act as both a pass through or corporate entity, with the ability to change the election after formation.