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Jewelry store - C, S Corp or LLC?


#1

Does anyone have a suggestion what would be best for a jewelry
store? This being a C Corp, S Corp or a LLC.

Thanks!
B.


#2

hello Britten - your question is in reality something that should be
decided with the help of a Certified Public Accountant & an Attorney.
My suggestion would be go to the library and get a book or do some
research online that explains each type of corporation and who is
going to pay the taxes.

You should plan to spend some money, this is the foundation of your
future dont cheep out (the orchid archives has lots o comments on
this )

goo


#3

Few small companies do C Corp anymore.

Its usually S Corp or LLC. An LLC gives protection of a corporation
with tax advantages of S Corp.

basically both of these allow you to pass income and LOSSES onto
your own tax return.

One difference is how they both handle tax deducibility of health
insurance.

A good accountant could tell you which is best for you. Ask the
person who did your tax return (hopefully its an accountant/cpa.

David Geller
www.JewelerProfit.com


#4

If you’re in the states look into meeting with your local SCORE
(Senior Core of Retired Entrepreneurs). Since it’s a free service
it’s a great place to start asking these questions before you move on
to accountants and lawyers where you’ll pay by the hour.

Here’s the link to find your local office…
http://www.score.org/findscore/

Pam Farren
Newburyport, MA


#5

I practice real estate law here in NC. As a suggestion, check with a
local attorney. However, as a general overview, a corporation is
"high maintenance". In order to start and maintain a corporation, you
have shares of stock, a board of directors, annual meetings, etc.
whether you are a small corporation or Lowes. The purpose is limited
liability. If you do not maintain a corporation, a judge can “pierce
the corporate veil” and find personal liability. In other words, if
you don’t treat it like a corporation, a judge will not either. Just
something to think about.


#6

One final suggestion for everyone. Look into an “umbrella” insurance
policy. It picks up coverage after your base policy has paid it’s
maximum. You can obtain approximately $2 Million in coverage for a
little over $200.00 per year.