that’s not a shot, in any way…I hope you’re joking around.
If you manage to make money in an LLC of this size, you’re doing it wrong.
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Was joking - edited the comment above.
whew - I would never want to offend.
Here’s the thing…let’s say Some Guy’s Back yard clears 50k to the green.
Super - 25k
Pro - 25k
Profit = 0
I’m pretty sure you’d rather pay personal income tax level than corp tax and THEN personal on top of it.
Yeah totally agree with you. Everything we do will always be built for a community and donated for free. We won’t ever make a profit on anything realistically.
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Another exciting nugget, after signing up for the LLC yesterday, @BCNSuper and @threeputtking were feeling extra send-y and bought a DJI Mavic Pro. We will be dishing out 4K video content in IV bags for direct inject purposes moving forward.
Edit: that is a drone for y’all that don’t know what a Mavic Pro is.
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I say we make BCN a church, exempt, call these guys the ministry. Tax deductible tithings from us the members… in no way is this sound tax advice…
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@sundaybag well it took three hours, but I finally caught up on all the posts so far. Wish I would have found this sooner, what a great idea and love all the hard work you’ve put in so far. I’m in the STL area and would be happy to lend a hand raking or doing whatever dirty work would be needed for a weekend to help out. Is reaching out via gmail the best way to purchase a towel? I filled out an application to become a part of #TheBestMembershipInGolf as well
Crack On
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By default LLC’s are taxed as partnerships under Subchapter -K and single member LLCs are treated as disregarded entities. While under the “Check the Box” election form, an LLC may choose C-Corp Taxation and from there may elect S-Corp taxation…why would they do that?
To my knowledge, e.g. mean for example
I think wholly owned LLCs are taxed same as S
A wholly owned LLC is disregarded for tax purposes, meaning any income, gain, loss, deduction, credit, etc. on assets held by the LLC are deemed owned directly by the owner for tax purposes (unless the owner elects to treat the LLC as a corporation, which generally makes no sense). The benefit of using a wholly owned LLC is there is no tax at the entity level (unlike a C corporation) and to have the benefit of limited liability for non-tax legal purposes.
I’m just curious, I had a similar conversation yesterday on the benefits/trade-offs betwen K and S taxation and couldn’t get a straight answer so it was weird that I saw your post. Quick research came up with with more favorable tax treatment regarding owner-employees regarding FICA and SECA, I already hate my life so I trailed off in reading it (I’ll have to go back with some coffee).
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Agree with everything you wrote. I’ve never formed an LLC that elected S-Corp treatment under the Code so just wanted to know what/if there is a benefit to that (assuming multiple members) (Edit I don’t really transact on the tax side of the house).
well, the other benefit is writing off the expenses of the LLC against the income. Without the entity, no write off, right?
I haven’t come across an S corporation since my early days at a law firm. I suppose there could be employment tax or self-employment tax advantages, but I’m not aware of any off the top of my head. Originally, an S corporation was developed as a vehicle that offered limited liability like a C corporation but allowed for partnership-like flow-through treatment for tax purposes. Then the LLC become common and generally replaced use of S corporations (at least in my experience) because an LLC has virtually no restrictions, whereas an S corporation is limited by a number of constraints under the tax code.
Again agreed all around, I’m guessing the S-Corp restriction are rarely worth minimally more favorable tax treatment for Owner-Employees…DONT BILL ME lol
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I got out of law firm practice so I don’t have to worry about billing anymore!
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Something, something, taxes, something, LLC…
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Happy you found us an shocked you read through the entire thread. Gotta be like reading a novel at this point.
We have towels available. Just DM me on here and we can make it work. Will get you signed up as a member here in the next few hours!
No Revenge of the Nerds GIF?!
It could just be a sole proprietorship without an LLC - but with all the hooligans running around the property a stray ball killing someone is a real possibility and I’m guessing homeowners insurance is going to kill The brough budget- can’t wait to see the waiver they present to me when I show up - I’m sure we have some great legal minds on here that could figure out the proper structure from a pure legal liability standpoint. Tax isn’t really the issue unless the guys want deductions - would suggest they create some revenue sources tied directly to the ops of the course first (hobby losses aren’t good)…