Hello AF,
I just started an ecommerce business. When I logged on to the IRS website to get an EIN I had to pick whether my Single-member LLC should be treated as an "S-Corp" or a "Sole Proprietorship". I had decisively elected the "Sole Proprietorship", however now I'm learning that making this choice would result in the profits of the business being treated as my personal income, which means higher taxes.
From other discussions, I'm hearing well, in Texas, if I had opted for the S-Corp taxation structure, I would have to pay something called Margin Tax. I got to tell yah, don't even know where to hang an anchor now. Really thought I was in the clear as far as forming the business entity without hitches.
As I was drawn to this type of structure due to it's "pass-through" taxation, did I cheat myself in not picking the "S-Corp" option? Thanks in advice guys for your assistance.
Also, can I change it back to an "S-Corp" since the EIN was just obtained on 11/29/2017
I just started an ecommerce business. When I logged on to the IRS website to get an EIN I had to pick whether my Single-member LLC should be treated as an "S-Corp" or a "Sole Proprietorship". I had decisively elected the "Sole Proprietorship", however now I'm learning that making this choice would result in the profits of the business being treated as my personal income, which means higher taxes.
From other discussions, I'm hearing well, in Texas, if I had opted for the S-Corp taxation structure, I would have to pay something called Margin Tax. I got to tell yah, don't even know where to hang an anchor now. Really thought I was in the clear as far as forming the business entity without hitches.
As I was drawn to this type of structure due to it's "pass-through" taxation, did I cheat myself in not picking the "S-Corp" option? Thanks in advice guys for your assistance.
Also, can I change it back to an "S-Corp" since the EIN was just obtained on 11/29/2017