I've been doing some consulting work on the side and filed a Schedule C last year (and plan to do the same this year) as a sole proprietorship. My "office" won't qualify for the IRS' rules about claiming a home office, so I pay taxes on almost all of what I make. Would finding some other business structure help me save taxes?
2006-09-16 15:39:28 · 4 answers · asked by Jason M 2 in Business & Finance ➔ Small Business
There's not much difference in tax benefits, the biggeet benefit in LLC is that you can't have your personal assets given to a plaintiff in a lawsuit because you've segregated your personal life from the company's.
2006-09-16 15:41:14 · answer #1 · answered by Anonymous · 1⤊ 0⤋
in case you opened the LLC and choose it taxed on a separate 12 months than your 1040, you will could get that LLC to be taxed as a separate C Corp. yet because of the fact the others have already pronounced, extensive headache and soreness... Separate accounting information, no mixing monies... Say you get THAT squared away, then you somewhat'll could supply your self a W2 each Dec for the calendar 12 months previous, and so on. to no longer point out a minimum of quarterly payroll filings (federal & state).
2016-12-12 09:43:10 · answer #2 · answered by ? 4 · 0⤊ 0⤋
LLC keeps your buisness and personal life separate. sole proprietorship allows buisness debtors to come after your personal assets in the event of financial troubles.
2006-09-16 15:43:05 · answer #3 · answered by sllyjo 5 · 1⤊ 0⤋
you answered your own question, limited liability
2006-09-16 15:41:49 · answer #4 · answered by austinguy62 2 · 1⤊ 0⤋