In Oklahoma we don't have the same requirement as NYS. I advise new
small businesses to either stay a sole proprietor (based on size) or
go to an LLC with S-Corp election. I was told in a meeting that S-
Corps have to do all the annual meetings, corporate meeting minutes,
etc that C-Corps do. But an LLC does not have that requirement.
Therefore an LLC with S-Corp election gets the preferential tax
treatment without all the required meetings and minutes recording.
The small businesses I have encountered want to operate decision
making wise like a sole proprietor - "I decide". They aren't
interested in having a corporate board of directors or annual
meetings. If they are just an S-Corp, it leaves them open for the IRS
to disallow their S-Corp status on the basis of not having the
corporate board of directors, meetings, etc.
Janet
--- In taxchat@yahoogroups.com, "Arnold M. Socol" <waymeans@...>
wrote:
>
> I gave a couple of classes this past month at an adult education
school. I contributed to a 10 week program towards a complete
business plan as the accountant. As part of my material I was asked
to discuss the different "entities", sole proprietor, LLC, Corp,
PTRs, etc. I have always felt more comfortable with the Corp and S-
Corp for small businesses. One student said her research concluded
an LLC was best for her. Her reason - simplicity. I advised that
here in NYS the cost to become an LLC doubled with the cost of
running classified ads in 2 newspapers for 13 weeks. For these
startups every nickel and dime matters. After thinking about it it
is less costly if they file as a single member disregarded entity on
Sch C and not having to file an 1120 series return. The tax prep fees
would be considerably less over time. Any thoughts on how you
recommend the best entity for small startups.
>
> Arnie
>
------------------------------------
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