Since it is now the beginning of a new year...Like most of you.... I am
getting all of my tax/legal/company stuff....( that I really hate).... set
up from the beginning. I am planning on shifting from a sole proprietor to
a Limited Liability Company, or a S-Corporation.
I have sought the advice of both a lawyer and an accountant on how to set
up my studio/company.
The lawyer suggests that for an artist working with contract work, and
royalties that an LLC is the best business setup. Royalties are not subject
to Self Employment Taxes but just income tax. He mentioned that it is a
simpler type of business.
My accountant thinks that and S-Corporation is the best way to go to avoid
the most taxes. Mainly self-employment taxes.
This has more paperwork, but could save lots in taxes.
So the main question is... Which business structure would be the best in
terms of simplicity, and tax savings?
If anyone has decided on an LLC, vs an S-Corp, could you let me know why,
and what some of the benefits are, as a working artist.
Thanks so much,
Dorothia M. Rohner
Painted Wings Studio
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7745 Eaglewood Lane,
Arlington, Nebraska. 68002