How can I limit the tax liabilities of my online business? 4 Answers as of March 14, 2011

I intend on opening an international web based company. How do I limit my tax liability? How should I structure the business; LLC, sole owner, or corporation?

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David Hoines Law
David Hoines Law | David Hoines
You need to see a tax lawyer or CPA
Answer Applies to: Florida
Replied: 3/14/2011
LT Pepper Law
LT Pepper Law | Luke T. Pepper
You should set up an LLC as it would shield you from most liabilities if the business folds. You will be taxed as a corporation in the state where LLC is established and subject to federal taxes. We offer a competitive rate on setting up LLCs.
Answer Applies to: Pennsylvania
Replied: 3/14/2011
Givner & Kaye
Givner & Kaye | Bruce Givner
You need to retain a tax lawyer and provide the lawyer with the current facts of the business along with your future plans for the business. This is not a consultation to be performed over the internet. The answer depends, in part, on the state in which your business is established and the states from which it is deriving revenue and how it derives revenue from those states. Read about the current antagonism between Amazon and states like California and Illinois and you will get a flavor for the issues.
Answer Applies to: California
Replied: 3/13/2011
Steven J. Fromm
Steven J. Fromm | Steven J. Fromm & Associates, P.C.
Books have been written on this topic and there are plenty of varying opinions at to the best entity. In most if not all cases it is better to use some sort of corporate vehicle rather than a sole proprietor or partnership. Corporations, whether they be regular C corporation, S corporations or LLCs, offer limited liability protection to their owners in most situations and certain corporate formalities are attended to regularly. When tax and other business factors enter into the equation the best course of action needs to be explored with a corporate/tax attorney to get the best entity for your particular situation.
Answer Applies to: Pennsylvania
Replied: 3/11/2011
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