$160,417.26

[mudcub]

I just did my taxes today. I paid $160,417.26 to the US government in 2006. In addition, I paid $8,586.88 in miscellaneous Colorado state taxes. That's enough to turn someone republican!

Comments

[allanh.livejournal.com]

The S-corp still has the benefit of single taxation over a C-corp, where everything is taxed twice (once for the corporation, and again when the owner withdraws salary or profits). LLPs, LLCs, etcetera, each have different sets of advantages for different circumstances.

Your CPA should be able to tell you which is going to work best for your business.

You do have a CPA on tap, yes? If not, I highly recommend doing so. My CPA saved me from making some wickedly stupid mistakes my first three or four years in business.

[that-dang-otter.livejournal.com]

I talked to a guy in Ukiah who didn't seem to know anything at all about LLCs. We just had an initial chat, nothing was actually done. He seems quite able to set up an S-corp, but I understand that LLCs are simpler and I happen to have the Nolo LLC kit handy.

[allanh.livejournal.com]

I started Spectrum SupportNet, Inc. using a great lawyer and a regular accountant. Within a month, I realized I needed a CPA to keep me out of trouble.

It's a pain in the ass (at best) to change corporation types once you've incorporated. You may also want to incorporate in a state OTHER than California, for tax and/or liability purposes. (For example, will your liability insurance be cheaper if you're incorporated in Delaware, Nevada, or Texas?)

Given the variables, I suggest it's worth considering spending the money to consult either a CPA or a tax lawyer to ensure that you're setting up the best form of corporation for your company's desired outcome. :)