The majority of small businesses probably don’t need to worry about incorporating. Many are endeavors “on the side” or with a just a few dollars of revenue. If you are lucky enough to be bringing in, say, $60,000 or more in profits annually and are still paying self-employment taxes on all of those profits, you may want to consider an s-corporation. By creating an LLC or corporation (if you haven’t done so already) and making a Subchapter S election, you can eliminate some, perhaps even the majority, of those taxes.
Our Maryland S Corporation kit
We provide two options for our Maryland kit: one uses an LLC as a base entity while the other uses a corporation as the foundation. We typically recommend using a limited liability company. There are fewer requirements of an LLC compared to a corporation and they have a bit more flexibility in deciding how they are taxed. LLCs can be treated as a sole prop (if just one member) or a partnership (with multiple members) in the time leading up to making the s election.
The limited liability kit is available here:
The corporation kit is available below:
As an added bonus, each kit comes with its very own set of governing documents. This means the LLC version has operating agreements and the corporation kit has bylaws you can use as templates to determine how the entity will be run.
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If you purchase a kit or e-book and it doesn’t help save you time or money, shoot us a message at firstname.lastname@example.org. We’ll be happy to issue a refund if you are unsatisfied.
What Are the Advantages of an S Corporation?: Find out some of the benefits of electing Subchapter S status.
Should You Use an S Corporation for a Sideline or Part-time Business?: If you are keeping you day job, should you still consider an s-corp?
Hiring Your Children as a Tax Loophole: Sure, you could make them do it for free, but you could actually gain even more by paying them!