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#ActualServant of the Lord

Posted 17 April 2013 - 11:47 AM

In the USA, there are pros and cons to many different forms of businesses. If there was one 'best' answer, then none of the others would exist.

You actually pay less taxes as a LLC until you reach a certain amount of profits.
Corporations pay a flat 35% in taxes, while LLCs pay from 15% to 35%, in gradually increasing tiers based on profits. Plus, taxes from LLCs (if owned by a single person) can be taxed as-if it were a Sole Proprietorship (while still retaining the benefits of limited liability), so it is (optionally) taxed as if it's your personal profits.

UnitedStates-based Corporations are taxed like corporations: 35%. Then, ofcourse, if you pay yourself a salary as CEO, your salary is taxed as an individual. This is called double-taxation. You get taxed twice as the owner of a corporation (first the corporation's profits, and then your individual salary), while just once as the owner of a LLC. Further, you get taxed less as a LLC in the first place, if you're making less profit than certain thresholds. Further still, you'll have to file two tax reports with corporations, while with an LLC (owned by a single-person - even if you have employees) you can combine it into one to simplify your work.

Again, not a lawyer, this is just what I've read; and this might be changed in the future by the US government.

Overall, from my limited understanding and limited research, I've come to the conclusion that (since I live in the USA) I want to run my own videogame company as an LLC, at least for the first few years and at least for the first few employees. In the US, you can change what form your business is later on, to suit your shifting needs.

Talk to a local lawyer and they can give much better advice, that is much better suited to your country.

#3Servant of the Lord

Posted 17 April 2013 - 11:47 AM

In the USA, there are pros and cons to many different forms of businesses.
You actually pay less taxes as a LLC until you reach a certain amount of profits.
Corporations pay a flat 35% in taxes, while LLCs pay from 15% to 35%, in gradually increasing tiers based on profits. Plus, taxes from LLCs (if owned by a single person) can be taxed as-if it were a Sole Proprietorship (while still retaining the benefits of limited liability), so it is (optionally) taxed as if it's your personal profits.

UnitedStates-based Corporations are taxed like corporations: 35%. Then, ofcourse, if you pay yourself a salary as CEO, your salary is taxed as an individual. This is called double-taxation. You get taxed twice as the owner of a corporation (first the corporation's profits, and then your individual salary), while just once as the owner of a LLC. Further, you get taxed less as a LLC in the first place, if you're making less profit than certain thresholds. Further still, you'll have to file two tax reports with corporations, while with an LLC (owned by a single-person - even if you have employees) you can combine it into one to simplify your work.

Again, not a lawyer, this is just what I've read; and this might be changed in the future by the US government.

Overall, from my limited understanding and limited research, I've come to the conclusion that (since I live in the USA) I want to run my own videogame company as an LLC, at least for the first few years and at least for the first few employees. In the US, you can change what form your business is later on, to suit your shifting needs.

Talk to a local lawyer and they can give much better advice, that is much better suited to your country.

#2Servant of the Lord

Posted 17 April 2013 - 11:45 AM

In the USA, there are pros and cons to many different forms of businesses.
You actually pay less taxes as a LLC until you reach a certain amount of profits.
Corporations pay a flat 35% in taxes, while LLCs pay from 15% to 35%, in gradually increasing tiers based on profits. Plus, taxes from LLCs (if owned by a single person) can be taxed as-if it were a Sole Proprietorship (while still retaining the benefits of limited liability), so it is (optionally) taxed as if it's your personal profits.

Corporations are taxed like corporations: 35%. Then, ofcourse, if you pay yourself a salary as CEO, your salary is taxed as an individual. This is called double-taxation. You get taxed twice as the owner of a corporation (first the corporation's profits, and then your individual salary), while just once as the owner of a LLC. Further, you get taxed less as a LLC in the first place, if you're making less profit than certain thresholds. Further still, you'll have to file two tax reports with corporations, while with an LLC (owned by a single-person - even if you have employees) you can combine it into one to simplify your work.

Again, not a lawyer, this is just what I've read; and this might be changed in the future by the US government.

Overall, from my limited understanding and limited research, I've come to the conclusion that I want to run my own videogame company as an LLC, at least for the first few years and at least for the first few employees. You can change what form your business is later on, to suit your shifting needs. But, as always, talk to a lawyer and they can give much better advice.

#1Servant of the Lord

Posted 17 April 2013 - 11:45 AM

I'm from Singapore.
 
Corporations get numerous benefits here I think.

In the USA, there are pros and cons to many different forms of businesses.
You actually pay less taxes as a LLC until you reach a certain amount of profits.
Corporations pay a flat 35% in taxes, while LLCs pay from 15% to 35%, in gradually increasing tiers based on profits. Plus, taxes from LLCs (if owned by a single person) can be taxed as-if it were a Sole Proprietorship (while still retaining the benefits of limited liability), so it is (optionally) taxed as if it's your personal profits.

Corporations are taxed like corporations: 35%. Then, ofcourse, if you pay yourself a salary as CEO, your salary is taxed as an individual. This is called double-taxation. You get taxed twice as the owner of a corporation (first the corporation's profits, and then your individual salary), while just once as the owner of a LLC. Further, you get taxed less as a LLC in the first place, if you're making less profit than certain thresholds. Further still, you'll have to file two tax reports with corporations, while with an LLC (owned by a single-person - even if you have employees) you can combine it into one to simplify your work.

Again, not a lawyer, this is just what I've read; and this might be changed in the future by the US government.

Overall, from my limited understanding and limited research, I've come to the conclusion that I want to run my own videogame company as an LLC, at least for the first few years and at least for the first few employees. You can change what form your business is later on, to suit your shifting needs. But, as always, talk to a lawyer and they can give much better advice.

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