I dont plan to actually run a business. But just want to set up an LLC so that I can save money on CA taxes.
What are the legal methods for doing this?
2006-09-13 05:41:49 · 7 answers · asked by abcdef 1 in Business & Finance ➔ Taxes ➔ United States
You can certainly set up an LLC, but how will that save on taxes? There is a filing fee, as well.
2006-09-13 05:44:50 · answer #1 · answered by Dave 4 · 0⤊ 0⤋
I can not imagine how this would save you money as there would be cost associated with the LLC to include minimum tax of $800 in CA. not to mention the cost of setting up the LLC. If you had some means of doing this with the sole intent of not paying tax which was legally due you would be committing tax fraud and subject to prosecution. And by the way you do pay tax on the few dollars you are paid for work in the prison if you reach the filing limits for total income.
2006-09-13 10:52:34 · answer #2 · answered by ? 6 · 0⤊ 0⤋
Setting up an LLC won't save you anything in taxes. It will actually cost you $800 a year...Calif. minimum filing fee. Don't waste your time of money unless you actually are going to run a business.
2006-09-13 07:45:01 · answer #3 · answered by extra_37 4 · 1⤊ 0⤋
If you worked as an independent contractor, an LLC may impact taxes. As an employee, it won't help.
2006-09-13 13:21:56 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
If your emplyer is going to withhold taxes there will be no benefit to transfer this income to a LLC.
2006-09-13 05:46:55 · answer #5 · answered by JackS 1 · 0⤊ 0⤋
It has nothing to do wiht your w-2 work. You can open one, but you MUST have some business or you will go to jail.
2006-09-13 05:44:59 · answer #6 · answered by Anonymous · 0⤊ 0⤋
There are none.
2006-09-13 07:24:20 · answer #7 · answered by Fool in the Rain 6 · 0⤊ 0⤋