The problem, in Ty's case, with setting up an LLC, C corp, or other tax
structure is that it presents conflicts with SSI benefits as well as other
considerations.
Furthermore, suggestions like a C corp are completely ridiculous, as those
don't even offer pass through benefits for tax purposes, and the money
can't
transition without being taxed, which means he'd have to pay taxes on what
he pays himself, rather than ranking it as personal income. This is
essentially a tripple cost for him. Not to mention the expense of
maintaining a c corp.
An S corp is at least slightly more reasonable; however, liability issues
might be limited to non-existent based on how he structures things.
And finally, to be quite blunt ... Since he's soon to be an adult, if he
already isn't over 18, he won't have to worry about his family's
resources,
and since he's got virtually nothing, it does pay to do this for a little
while until he can transition structures.
Take care,
Sina
-----Original Message-----
From: programmingblind-bounce@xxxxxxxxxxxxx
[mailto:programmingblind-bounce@xxxxxxxxxxxxx] On Behalf Of Ricks Place
Sent: Monday, June 01, 2009 12:51 PM
To: programmingblind@xxxxxxxxxxxxx
Subject: Re: home business-getting started
Yes, Sina is wrong. Exactly what business structure are you going to set
up?
I have known several folks who did contract work without setting up a LLC,
they set up other types and I don't remember what they were but I have
said
my piece. You are being penny wise and pound foolish if your structure
does
not give you limited liability on your family's assets.
Over and Out:
Rick, The chicken hearted
----- Original Message -----
From: "Tyler Littlefield" <tyler@xxxxxxxxxxxxx>
To: <programmingblind@xxxxxxxxxxxxx>
Sent: Monday, June 01, 2009 12:38 PM
Subject: Re: home business-getting started
Sina isn't wrong; I know plenty of people that do a soul setup, and it
works. LLC is safer, yes. Cheaper? No.
Thanks,
Tyler Littlefield
Web: tysdomain.com
email: tyler@xxxxxxxxxxxxx
My programs don't have bugs, they're called randomly added features.
----- Original Message -----
From: "Ricks Place" <OFBGMail@xxxxxxxxx>
To: <programmingblind@xxxxxxxxxxxxx>
Sent: Monday, June 01, 2009 10:35 AM
Subject: Re: home business-getting started
Hi Rick: Spot on. If ty gets hit by some fluf head who breaks the
computer and blames him he will need a lawyer then and pay him
thousands.
Then if he loses the case he can lose everything he owns and perhaps be
liabl for much more than that as well.
There are Third Party Liabilities he could face if someone uses his work
to do something that causes problems and copyright laws or just folks
who
file suits to see if they can get something for nothing ...
If he goes to someone's house and they say he broke their computer or
spilled something on their $3000 carpet he can be sued. If someone
visits
him and falls down he can be sued. If he does not smile at a customer
and
their feelings are hurt he can get sued. Now, he might win or not.
Either
way it will cost him big time and his house, car, all his money and
perhaps his future income could be in jeopardy . Sina is wrong to
counsol
him to use only a CPA and, in fact, a good CPA will tell him to talk to
a
lawyer or set him up in something like a LLC or other limited liability
business structure.
Rick USA
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