What is the name of your state? Texas
My wife and I have fulltime home-based businesses operated as a sole proprietorship where we pay taxes quarterly. Our businesses include online book sales/web design/writing/advertising sales from websites. We have done this for several years, and gross about 70k a year, primarily from selling books that we mail out. Just my wife and I, who are in our 40s. We have no employees or children. For any extra work needed, we would just farm out and pay someone on an hourly basis.
From reading books such as Inc Yourself, Lower Your Taxes, and ones about LLCs, S corps, and such, have considered making changes.
Wanting to have the best business formation for us, which would allow us to writeoff business expenses optimally, have our own complete medical coverage if possible, and one day sell our businesses.
One factor is my wife has some problems where she will need physical therapy. We have looked into ways where she can somehow get disability and hiring her on an hourly basis, and as an employee have to where she can get reimbursed through our creating our own company health insurance reimbursement plan to cover her deductibles and such. From our looking through, with social security, FICA taxes, and extra paperwork, we hardly see how it is worth the effort to be beneficial. We have looked at the Health Savings Plans, but they are expensive. For the self employed, as you are aware, medical insurance is insanely high.
Speaking of expense, it is costly to form a business here in Texas (think it's $200) as an LLC or S corp, with annual taxes/fees the state also charges. We find it hard to justify, especially as we see very little chance for liability to ever be an issue. We would like to sell our business someday though, and have considered setting up each sideline as it's own business unit within say a subsidiary.
For our situation, should we just stay a sole proprietorship? Have heard of situations like ours where a couple had a limited partnership. Don't have a problem with the extra paperwork, it's just the added expenses that the state charges for forming and remaining such an the entity that I have a problem with.
Suggestions are welcome.
My wife and I have fulltime home-based businesses operated as a sole proprietorship where we pay taxes quarterly. Our businesses include online book sales/web design/writing/advertising sales from websites. We have done this for several years, and gross about 70k a year, primarily from selling books that we mail out. Just my wife and I, who are in our 40s. We have no employees or children. For any extra work needed, we would just farm out and pay someone on an hourly basis.
From reading books such as Inc Yourself, Lower Your Taxes, and ones about LLCs, S corps, and such, have considered making changes.
Wanting to have the best business formation for us, which would allow us to writeoff business expenses optimally, have our own complete medical coverage if possible, and one day sell our businesses.
One factor is my wife has some problems where she will need physical therapy. We have looked into ways where she can somehow get disability and hiring her on an hourly basis, and as an employee have to where she can get reimbursed through our creating our own company health insurance reimbursement plan to cover her deductibles and such. From our looking through, with social security, FICA taxes, and extra paperwork, we hardly see how it is worth the effort to be beneficial. We have looked at the Health Savings Plans, but they are expensive. For the self employed, as you are aware, medical insurance is insanely high.
Speaking of expense, it is costly to form a business here in Texas (think it's $200) as an LLC or S corp, with annual taxes/fees the state also charges. We find it hard to justify, especially as we see very little chance for liability to ever be an issue. We would like to sell our business someday though, and have considered setting up each sideline as it's own business unit within say a subsidiary.
For our situation, should we just stay a sole proprietorship? Have heard of situations like ours where a couple had a limited partnership. Don't have a problem with the extra paperwork, it's just the added expenses that the state charges for forming and remaining such an the entity that I have a problem with.
Suggestions are welcome.