Not at all. I was just pointing out that the other message was apparently confusing s-corps and partnerships. As to "what's better" an s-corp or comething else, that's determined on a case-by-case basis. Though I personally do not rush into recommending s-corps. They are full of tricks and traps more so that other entities, so I use them far less frequently (use them only when "necessary"!). Sure - a relative could have a bearing on the tax sitation, but it is not necessarily "bad" to have a relative involved. I'd suggest that most small businesses have family involved.
Thank you for an informed response. I am not really ready yet, but I like to gather little pieces of info as I go...so until the numbers get to the more "cost effective structuring level" I will continue pre-paying them quarterly as a "married, filing jointly" structure. I am told that sometimes I get into the nuts and bolts of things where my time would be better spent in using specialists..I really do not know if this is true yet, as I have always done all of my own taxes and have structured my affairs to fit my needs myself. www.legalzoom.com is a wonderful resource. I have even prepared a case for Tax court, four years ago, and used a University Student that needed some credits, to litigate my small case in which we won. If I would have lost, I simply would have paid the small tax of under 1k. It was more of an exercise in the system to give us more of an experience with the way things worked, than the money itself. I know this may sound strange to some people, but I find the IRS very easy to deal with and fair. (I know I am really going to get it for this statement, but if you follow the rules, they are usually clear) Michael B.
Not sure if you saw the thread on starting a hedge fund - if not, there may be some useful information there; http://www.elitetrader.com/vb/showt...age=6&highlight=hedge fund setup&pagenumber=1 Green Trader Tax is another good source and they offer consultation; http://www.greencompany.com/Traders/index.shtml When you're ready to form an entity The Company Corporation offers good service and a complete package at very reasonable cost (I've used them for Delaware S-Corps and they're good); http://www.corporate.com NB