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Posted by Herb Smith on November 6, 2007, 6:25 am
Please log in for more thread options ssnneeaakk1...@yahoo.com wrote:
> I am incorporated as an S Corp for my primary business,
> which is web site development.
>
> But I am soon going to be creating a website to sell a few
> products online.
>
> For this new venture I am considering if I should create a
> DBA off of my current S Corp, or create a new LLC or S Corp.
>
> I am thinking the easiest route would be to create an LLC
> (which has a lot less paperwork than the S Corp) and then
> have the LLC "zero out" every month by paying my S Corp a
> fee for the web development work and hosting.
>
> Is there anything wrong with that type of setup?
Yes. Why not just operate as a sole proprietor (Schedule
C/SE), using a DBA if you wish, and avoid the complications.
That's how you will be taxed anyway.
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