[Harp-L] Forming a Business Entity



Seek the advice of an attorney within your state. Laws about corporations and LLCs vary from state to state, as do annual minimum tax for each entities.

Additionally the tax consequences on a federal level will vary, and there is a danger that if you form an S corp for a band you will be reclassified as a personal service corp, meaning you'd pay taxes at the corporate level as well as a personal level.

There are also filing requirements and contributions to unemployment insurance that may arise on both the state and federal level to consider.

What I am trying to illustrate is that there are many issues to consider and have correct answers on BEFORE you choose what type of entity to use.

Seriously, don't rely on internet advice when making decisions that have legal and tax consequences, talk to a professional in your area. It's not as simple as picking and then filing with your state, despite what other people might tell you.

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