Online Business Question

[mike2010]

What is the name of your state (only U.S. law)? PA

Hello, i've been running an LLC for around 10 years. But the last several years it's been just me and noone else. So i'm the only owner and only employee.

I don't sell any physical items.... it's more or less a web hosting site.

But I have a couple other sites along different categories as well. Like a news / weather site that just makes money from ad impressions.

So, I was wondering if I should dissolve the current LLC and change it to something else, a little more sole proprietor friendly ? And would if be better for taxes as well ?

I initially opened it in NJ....but now live in PA. I'm not even sure how to go about dissolving it, or if I could do it with a lawyer in PA ? (since I initially opened it in NJ)

I appreciate the help, much

mike

 

[FlyingRon]

If you open the LLC in NJ, it needs to be closed in NJ.

http://www.state.nj.us/treasury/revenue/dissolve.shtml

 

[mike2010]

If you open the LLC in NJ, it needs to be closed in NJ.

http://www.state.nj.us/treasury/revenue/dissolve.shtml

Thanks for that part. I didn't know.

Think I should dissolve it, and open something else (other than an LLC) since i'm a sole owner / proprietor ? Thinking mostly about tax breaks here.

Once again I don't sell physical products, just online services.

 

[LdiJ]

Thanks for that part. I didn't know.

Think I should dissolve it, and open something else (other than an LLC) since i'm a sole owner / proprietor ? Thinking mostly about tax breaks here.

Once again I don't sell physical products, just online services.

Taxwise, there is no difference between a sole proprietor and a single member LLC. Both would be filed on Schedule C and use Schedule SE.

An LLC making an S-corp election could possibly end up with some tax savings depending on the amount of business and the amount of actual work that the sole member puts into the business. A working member must receive a proper fair market value, wage for the work that they do, but if there are profits in excess of that FM wage they would be free from SE tax.