Is a small 2-person office where one person owns over 95% of the company shares considered a Personal Service Corporation? Can I register it as a Professional Service Corporation and not have to pay a 35% flat tax? The 35% rule is really getting to me...
Thanks!
Carrera
Feb 3, 16 1:55 am
Just do an LLC and pay simple personal income tax, then it's a matter of maneuvering to lower the lower rate... I'd tell you how to that but you're an architect and you wouldn't do it even if you knew how.
BulgarBlogger
Feb 3, 16 8:12 am
LLC's are not legally allowed to offer architectural services in NYS... I went through this when completing my IDP... And the state rarely prosecutes so that's why there is an influx, bit purely from amlegal point of view, LLC's should not be offering architectural services. Only certain entities are recognized. PC's and PLLCs are viable, but if I want to practice in multiple states, some states don't recognize PLLC's. The best option therefore is a PC, but Im not sure about the personal service corporation vs professional corporation. Thanks!
Carrera, if you're the sole owner, a PC gives you some pretty huge tax advantages.
shellarchitect
Feb 3, 16 8:58 am
are S Corps allowed? Either way I think you should prob talk to a lawyer....
shellarchitect
Feb 3, 16 9:04 am
never mind - i see they're discussed in the link above
gruen
Feb 3, 16 9:33 am
I am a single owner Scorp PC.
Miles Jaffe
Feb 3, 16 9:39 am
Make the LLC a holding company that owns the corporation that does architecture, preferably with an overseas address in Ireland or some other tax haven. Then have another holding company use the US as tax haven. Of course you have to have some pretty big commissions in order to cover the fees, but they become negligible at a certain level.
U$A!
Carrera
Feb 3, 16 10:52 am
NY is tax-expensive, plenty of ways around it ^ if the income amounts to anything…simplest are real estate LLC’s that you borrow from….and as everyone knows architects are all too poor to ever pay them back.
Feb 3, 16 1:44 pm
Bulgar,
One way to do it is:
Setup a PLLC in NYS and set up a 'subsidiary LLC or associate LLC as a simple LLC where one member of the LLC is the PLLC from NYS.
Other states will recognize the PLLC up to that level even if they don't have a PLLC. An LLC can often have just one member so the LLC's sole member can be the PLLC. Remember, persons as defined by laws can mean not just natural persons but also business entities.
Therefore, you solve your problem.
Others have also suggested some interesting ideas like what Miles said. You have options.
Feb 3, 16 1:57 pm
tax havens.... hmmm.... Bahamas.... <Looks around for IRS tax people>
Miles Jaffe
Feb 4, 16 9:19 am
Bulgar, you could always hire Richard for legal and financial advice.
null pointer
Feb 4, 16 9:57 am
fun fact about NYS: a holding company cannot own an architecture company unless you happen to have one of the old legacy corporations that are still allowed to practice architecture while still holding onto a C-corp/Non-PC status. There is an actual market for those.
Is a small 2-person office where one person owns over 95% of the company shares considered a Personal Service Corporation? Can I register it as a Professional Service Corporation and not have to pay a 35% flat tax? The 35% rule is really getting to me...
Thanks!
Just do an LLC and pay simple personal income tax, then it's a matter of maneuvering to lower the lower rate... I'd tell you how to that but you're an architect and you wouldn't do it even if you knew how.
LLC's are not legally allowed to offer architectural services in NYS... I went through this when completing my IDP... And the state rarely prosecutes so that's why there is an influx, bit purely from amlegal point of view, LLC's should not be offering architectural services. Only certain entities are recognized. PC's and PLLCs are viable, but if I want to practice in multiple states, some states don't recognize PLLC's. The best option therefore is a PC, but Im not sure about the personal service corporation vs professional corporation. Thanks!
http://community.lawyers.com/forums/t/110855.aspx
Carrera, if you're the sole owner, a PC gives you some pretty huge tax advantages.
are S Corps allowed? Either way I think you should prob talk to a lawyer....
never mind - i see they're discussed in the link above
I am a single owner Scorp PC.
Make the LLC a holding company that owns the corporation that does architecture, preferably with an overseas address in Ireland or some other tax haven. Then have another holding company use the US as tax haven. Of course you have to have some pretty big commissions in order to cover the fees, but they become negligible at a certain level.
U$A!
NY is tax-expensive, plenty of ways around it ^ if the income amounts to anything…simplest are real estate LLC’s that you borrow from….and as everyone knows architects are all too poor to ever pay them back.
Bulgar,
One way to do it is:
Setup a PLLC in NYS and set up a 'subsidiary LLC or associate LLC as a simple LLC where one member of the LLC is the PLLC from NYS.
Other states will recognize the PLLC up to that level even if they don't have a PLLC. An LLC can often have just one member so the LLC's sole member can be the PLLC. Remember, persons as defined by laws can mean not just natural persons but also business entities.
Therefore, you solve your problem.
Others have also suggested some interesting ideas like what Miles said. You have options.
tax havens.... hmmm.... Bahamas.... <Looks around for IRS tax people>
Bulgar, you could always hire Richard for legal and financial advice.
fun fact about NYS: a holding company cannot own an architecture company unless you happen to have one of the old legacy corporations that are still allowed to practice architecture while still holding onto a C-corp/Non-PC status. There is an actual market for those.