help me help the man
September 8, 2006 9:55 AM Subscribe
I'm trying to make my new web project legal in California. After reading through the Nolo press book(s), we thought that perhaps the LLC was the best corporate structure (we are going to issue stock and give the primary developer a portion in lieu of payment). While the Federal government taxes LLCs like sole proprietorships - you aren't taxed unless you make profit, and I don't see our profit outpacing our costs for a year - the State of California charges an LLC "tax" (really a fee) of $800, due almost immediately after your incorporation paperwork goes through, so...
posted by luriete to work & money (9 answers total) 1 user marked this as a favorite
Is there a way to legally put off the incorporation until we can afford to exist as a corporate entity? If we have $799 in startup costs before then, can we defer the deduction of those until after we incorporate and pay the $800? Is the $800 in California state tax fee deductible as a business expense on our federal return?
I'd like to consult an attorney but of course cannot afford to, as this project is, at least during its early development, on a shoestring budget. Any suggestions on other tax resources for small businesses?