New Federal Requirement: Starting January 1, 2024, most business entities in the US will need to report Beneficial Ownership Information.
I’m a US citizen living in South Korea. I’m starting up an online toy store business. I’m thinking about WY. I was told it’s the best place to form an LLC. A friend of mine told me to form as an S-Corporation but I read if you pay too little of of a salary, you get penalized. My question is what entity should I form? I’m just starting this business. I may only start out with 1 type of toy and not in a huge quantity. I can’t pay myself a salary if I’m not selling that many. What do I do? When should I elect an S- Corp if I become an LLC. How much in salary should I be paying myself in order to elect as an S-Corp? I will be the only member. Will I be protected still? What do I have to do since I live overseas? I may have 1 employee in the US to help me with shipping. I plan to keep some of the toys here some sales from my website from Koreans. I plan to market my business here too.
Dear Steven,
From your description I think an LLC in Wyoming would work perfectly for you. LLC is flexible as far as taxation goes, so when (and if) your business is ready to be converted to S-Corporation-based taxation you will be able to elect your LLC to be taxed as S-Corporation.
From what I know multiple-member LLCs are considered to be better protected as far as limited liability goes, but even a single member LLC is still a good tool in separating your personal assets from the liabilities of the business.
You are welcome to read more about forming an LLC in Wyoming here.
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