Whats a good cost effective entity for taxes?

Question

After reading on here I was initially thinking LLC taxed as an S corp but My tax guy says just use a sole proprietor with Good Insurance policy. It has the Least start up and yearly maintenance cost and an LLC would not be beneficial unless I make over 120k. I'm doing subject to and wholesaling, Not a lot of volume.
Thx

Hans Langsholt · Answer

What about a Delaware LLC?
If under 10 000 shares  the yearly tax will be around 75 usd for company (maybe this is a S company?). There migh be some agent fees and other and the cost of the company would be 300 -400 usd. But of course, there will be more expenses and taxes on income and other. But it is a good way to start a business to keep expenses down until business get good. before I live abroad and are wondering about register a Delaware LLC.

Any advices regarding this isappreciated.

Regarding insurance I am not sure if this is needed since your not are personaly responsible in a LLC. But maybe it is good to have insurance so the company not get bankrupt because of other reasons than the market and sales.

J Scott · Answer

Why does he think it wouldn't be beneficial unless you make over $120K?

I don't know what your personal financial situation is, but even under $120K, I'd save a lot of money on SET by running income through my LLC (taxed as an S-Corp).