Type of Entity
Hello. What is the best entity (Sole-proprietor, LLC - with or w/out S-Corp, etc.) for the following: 1)home-based business - operated out of the home 2)Single owner/member - no employees 3)Type of business - Administrative Assistance / Build websites 4)Will continue to work with current employer (major company) until my home-based business generates a healthy income. My two main concerns are: a) taxes b) paperwork (filing and retention). Thank you in advance!!
If you are the only owner, a corporation would be best. After incorporation, you would then need to file the Sub S election with the IRS. This will make your business a pass through entity, and taxes, if you have net income from your business, would be payable at your individual level, calculated separately, but added together with your other income from your employer. Not much additional paperwork; you'll keep the same records as if you were a sole proprietor, but a little more work and cost since you'll have the added layer of a corporation.