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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm not sure why you say LLC has high taxes. It doesn't, in fact it saves you a ton of money on taxes. Your places of home is a business expense, everything you buy for the company (computers, etc) is a business expense. Last year our consulting LLC grossed $30,000 and we only paid taxes on $9000.[/quote]

Unless there is some sort of special circumstance, your entire home is not a business expense. You are required to calculate only the percentage you use for work. And no, you can't count places like the kitchen and bathroom because you use them to make lunch or wash your hands during your work time. There are very specific and limiting guidelines. [/quote]

If your home is a condo then the whole thing counts.[/quote]

Sorry, but you can only claim areas that you use exclusively for business, so if you don't have any space that is only for your business and not for living then you don't get a deduction.  http://www.irs.gov/pub/irs-pdf/p587.pdf

OP, I think a PC will have a higher tax rate than an LLC, although it may depend on your circumstances.  An LLC basically treats you like a corporation for liability purposes (so if the company incurs debts the creditors can't go after your personal assets) but as an individual for tax purposes.  I think s-corps are sort of obsolete at this point because they were a way of getting that treatment before LLCs became widespread.[/quote]

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