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bilnmad

Guidance

6 posts in this topic

I want to set up the best tax and liability situation in North Carolina to operate under a ride share like Uber or Lyft. I do not want income, I only want the income generated to pay for the vehicle and all maintenance and grow the business into other opportunities. I would simply be able to operate the company car for personal uses. Then the ride share company file its own corporate taxes with no wage distribution.

I have rental properties and other investments that I do not want any potential liability from the ride share. I'm familiar with aspects of record keeping, taxes, and structure for my LLC but I want this set up completely on its own with no wages or dividends paid. The research I have done says C Corp but I wanted to see what the folks that really know say.

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Your idea sounds a little hare-brained.*  I suggest you discuss it with a local attorney.

 

*Setting up a C Corporation for a business that would have no employees or profit.  Such a "shell corporation" would certainly not survive any effort to "Pierce the corporate veil". 

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And it wouldn't protect you from liability for your own actions.

 

If you caused an accident it won't be your C Corp that gets sued, it will be you.

 

If you wanted to borrow money for the business, lenders would likely want a personal guarantee.

 

So, you see, neither a C Corp or an LLC will do as much for you as you think it will.

 

 

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RetiredinVA, I wish I could thank you but I take offense to your post. Seems you didn't read the post or don't understand English. You obviously know NOTHING of my unique circumstances & I never said it would have no profit. Thought there were people here that could answer my simple question.

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I know nothing about your "unique" circumstances because you have told us nothing about your "unique" circumstances.

 

  From your post:

20 hours ago, bilnmad said:

only want the income generated to pay for the vehicle and all maintenance and grow the business into other opportunities.

So there will be no profit.

 

20 hours ago, bilnmad said:

he ride share company file its own corporate taxes with no wage distribution.

So there will be no employees.

 

20 hours ago, bilnmad said:

no wages or dividends paid

Again, no employees.

 

What exactly is it you are trying to accomplish here?

 

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The OP has been asked in another forum to explain what he wants the outcome to be.

 

I asked him if his aim was to not pay taxes and he said that wasn't the issue.

 

It was also explained to him that creation of a C Corp would result in double taxation. And an LLC would require a salary for the one employee (the OP). Blah Blah Blah.

 

The OP doesn't know what the outcome he wants is but is 100% sure that outcome is available for him.

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