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Tax Setup

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susan weis

Freshman Member
Joined
Dec 8, 2004
Professional Status
Certified Residential Appraiser
State
Virginia
I've been a sole proprietor for 14 years now............thinking of switching to an LLC/S-corp. Can any of you tell me some pros and cons with it working for an appraisal business? I've got two part time employees, gross about $150k. Trying to reduce tax debt, but would like to avoid having to pay an accountant to do my taxes! But if it's worth it I guess I could.
 

nstanbru

Senior Member
Joined
Feb 19, 2009
Professional Status
Certified General Appraiser
State
California
Trying to reduce tax debt, but would like to avoid having to pay an accountant to do my taxes! But if it's worth it I guess I could.

It's a cost of doing business, go for it.
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I've been a sole proprietor for 14 years now............thinking of switching to an LLC/S-corp. Can any of you tell me some pros and cons with it working for an appraisal business? I've got two part time employees, gross about $150k. Trying to reduce tax debt, but would like to avoid having to pay an accountant to do my taxes! But if it's worth it I guess I could.
These are questions that you should really being asking a CPA or business/tax attorney - Most appraisers have little or no expertise regarding these matters. Spend a few dollars now and hire someone who knows what they are talking about and get them to recommend the best business structure for your situation. Trying to be cheap now may cost you tens of thousands of dollars in taxes down the road that you could have avoided.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Re liability. If you get sued, you will be sued both under the company name and individually. Not much protection.

Set down and talk with a CPA. You may find more tax liabilities if you incorporate vs sole proprietor. That was what I found out.
 

Howard Klahr

Senior Member
Joined
Oct 4, 2004
Professional Status
Certified General Appraiser
State
Florida
Re liability. If you get sued, you will be sued both under the company name and individually. Not much protection
I wasn't aware of you obtained your law degree. The good news is you are wrong.
 

Vermonter

Senior Member
Joined
Mar 21, 2007
Professional Status
Certified Residential Appraiser
State
Vermont
Another vote for consulting a CPA/Tax Attorney. Every business and every state is different and there are going to be different pros/cons to incorporating. My CPA and her firm attorney went over the different options, benefits, etc and save me more than I pay them.

That being said, this is a tough time of year to get an appointment with a CPA.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
That being said, this is a tough time of year to get an appointment with a CPA.
Good point!
My guy, who is worth his weight in gold (and he's not a small fella!) also takes 2 weeks off every year starting 4/16 ... I think he earns that time

I agree to consult with a CPA/lawyer. Personally, for my business, being an S-Corp works out well, but that's just me and I'm a solo shop
 
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