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Know there are a lot of business owners / soon to be business owners on here.
When or Why should I get an LLC?
When or Why should I get an LLC?
Reasons For Starting An LLC
- Thread in 'General' Thread starter Started by searchin4js,
- Start date
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Can't be sued or held liable for most issues with an LLC
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All depends on what type of business you are operating.
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I need to set my house painting business to LLC but it’s expensive for me. I’m currently set up as “sole owner”.
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Sole proprietor?
My understanding is that its self explanatory it's a limited liability corp.
It protects YOUR ASSETS from any kind of liability that the entity (LLC) might face. Its relatively cheap to start but you dont see alot of the tax benefits that an C or S Corp will have.
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Pretty sure there are no fed tax benefits for an LLC, it's not an IRS classification. If you're a single member LLC you get to choose to file each year as either a sole-proprietor or a corporation - and then you can opt to file as an S-Corp after that if you choose to be treated as corporation.
In California you're gonna have to pay the Franchise Tax Board $850 just to 'pass go' every year regardless of if you're an LLC or S-Corp.
My advice to OP, you should go see a CPA. Pass-through LLC vs pass-through S-Corp? Pay a guy not to think about it.
Seriously though, even if liability isn't a concern, if you're generating enough income to live off, a CPA will reduce your tax burden significantly regardless of the entity type. Even after accounting for CPA fees and any state franchise taxes.
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business write offs is fantastic so ive heard.
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Thread has potential if taken seriously
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Do you have a side hustle or do people pay you for your services? Do you own a rental property? As stated above asset protection and electing S Corp status if you are a non-rental based business can help save you major tax dollars. If you own a multiple rental properties it can help you protect each property if held in separate LLCs. If any body has any specific questions I can try to answer them here or PM me. I am a CPA with my own firm I can help anybody on here form a LLC or Corp and help with bookkeeping/payroll/tax filings.
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This. I own a rental property and switched ownership from myself to an LLC I started for liability purposes. If someone is in my rental property and wants to sue me, they can't. They can only sue my LLC who has no money
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/thread
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friend of mine moves 100 - 200 shoes weekly via Flight Club and was bouncing the idea of an LLC around but I don't see a reason he would need one.
Tax purposes?
Tax purposes?
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Stop fronting. It is you moving 100-200 shoes every week.
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lmao... only about 40 - 50 for me.Stop fronting. It is you moving 100-200 shoes every week.
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How do you acquire that many? I know the obvious would be to have connects.
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Lets not derail the thread. Hit my pm
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It looks like your settings do not allow me to PM you. Try hitting me up.
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Try now please
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I want one for expenses but I heard don't go crazy and don't report losses non stop. Anyone do it for this purpose? I do plan on starting a small business eventually but if there is any substantial tax benefit to starting sooner then I'm all for it.
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Initially I formed an LLC for tax purposes opposed to for protection from damages.
When I first hooked up with my CPA, he told me when it comes to business expenses "there's a line that we aren't going to cross, but we are going to tight rope walk that mother****er"
I track my annual expenses then hand them off to him in a spread sheet. If I was too liberal or something needs to taken down a notch he handles that part.
Feds will see through a sham business quickly though i.e if your "business" is really a hobby that reports losses year after year, they will figure it out. General consensus seems to be it's not a game worth playing.
If you own or operate a legitimate business there are definitely benefits that you can legally take advantage of but best leave it to a professional to leverage that.
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If you sell $20k gross via PayPal or another merchant they will send the IRS a form 1099-k and they will be looking for a business return from that. I would imagine moving that many shoes he’s above that threshold so he might as well form a business (I recommend an S Corp) for tax reasons and liability protection.
