I've finally taken the plunge and had my Pennsylvania Dept of Ag inspection done last month and passed on the first try. I've completed all of my required paperwork with our city for my Mercantile License, acquired liability insurance and I also registered for LLC status on my business (at my attorney's suggestion) My accountant is now telling me that I should cancel my LLC status because I now am subject to an additional 10% in taxes that I must pay every year. Do any of you know anything about this? Thank you so much to anyone who responds.
I just got done doing the same thing (also in PA) and I filed for my LLC before I even filed any other paper work. This keeps you and your business separate. My lawyer also happens to be my good friend, and stressed its importance, I think it's worth the 10%, plus we don't have to pay sales tax, so I don't think it's a big deal.
On a side note, how picky were they at your inspection, mine is in 2 weeks....
Are you sure you would need to pay the 10% tax? From what I've read, in PA you only owe the 10% corporate income tax if you choose to have your LLC taxed as an S corp or C corp. If you do not elect this taxation your LLC would be treated as a disregarded entity and taxed as a sole prop for an individual LLC or a partnership for a multi-member LLC, so you would only need to pay 3.07% personal income tax on the pass-through net income.
Congratulations!! And that's awesome you passed your first inspection!! I have no legal advice....just wanted to say...HAPPY BAKING!!
Jason Craft, I will definitely check into the info you provided, thank you so much. I'm pretty much at the mercy of others telling me what I need to do so I really appreciate your knowledge.
Labelle24, I inboxed a message to you. Good luck with your inspection. Let me know h ow it goes!
Debbye27, thank you so much, I'm excited!