Wick & Trautwein, LLC
Call Today
Toll Free
Broad Based Experienced Legal Help Since 1972

Creative Solutions, Exceptional Results

The law firm of Wick & Trautwein, LLC, has a long history of partnerships with the people and businesses of northern Colorado and southern Wyoming

2 huge reasons making a startup into an LLC makes sense

When you run a startup, you have a handful of options that you can use to classify your business, including making it a C-Corp, an S-Corp or an LLC—a Limited Liability Corporation. While all situations are different, there are two big reasons why making your startup into an LLC might make the most sense in Colorado.

First of all, you have to remember that man startups actually lose money at first. Meanwhile, your LLC won't be taxed as a company. You—and any other owners—will be personally taxed. These taxes are usually divided up based on ownership percentages.

Why is this helpful? It means you can put those losses against your personal income on your tax returns, helping to save on what you have to pay. If you own 50 percent of the company and it loses $10,000, that means you have $5,000 to write off.

Another reason this is helpful, from a tax perspective, is that the money will only be taxed one time—when it comes to you. If your business is a standard corporation, the company will first have to pay taxes. The company will then give you paychecks or a salary, as an employee. You'll have to pay taxes on that income, as well.

This means all of the money ends up getting taxed not once, but twice, before it ever hits your bank account. With an LLC, the taxes are more straightforward and you just get taxed once, meaning it's ideal for small companies with just a few owners/employees.

When deciding what type of business to form, be sure you really look into all of your options and what they'll mean financially.

Source: On Startups, "Startup 101 : Should You Form An Inc. or LLC?," Dharmesh Shah, accessed Dec. 22, 2015

No Comments

Leave a comment
Comment Information
Watch More Videos

We Take Your
Emails Seriously

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Wick & Trautwein, LLC BBB Business Review
FindLaw Network
Firm Locations
Wick & Trautwein, LLC
323 South College Avenue #3
Fort Collins, CO 80524

Phone: 970-237-5694
Toll Free: 866-686-1410
Fax: 970-482-8929
Fort Collins Law Office Map
Wick & Trautwein, LLC
513 Big Thompson Ave
Estes Park, CO 80517

Located in Lower Stanley Village
Phone: 970-586-3505
Fax: 970-586-3269
Estes Park Law Office Map

Windsor Office
(by appointment only)
421 Main Street
Windsor, CO 80535
Toll Free: 866-686-1410
Map and Directions