Reducing Your LLC’s Taxes

Reducing taxes and limiting personal liability are the two primary reasons for forming an LLC.

While incorporating cannot eliminate taxes (unless you make no money!), choosing the right entity can have a dramatic impact on the amount of tax you pay.

Know Your Entity

Choosing the right entity for your business can have huge tax implications. Even worse, switching entities after you’re business has started can cause huge tax headaches. The LLC has the great advantage of being “tax” neutral when changing corporate forms. Learn about the difference corporate forms and their tax implications before you commit.

Avoid the corporate double tax with an LLC.

Single member LLCs.

LLCs and S-corporations compared. not rated yet

Learn the important differences between the S-corporation and the LLC, particularly the limitations of S-corps on the number of shareholders.

Understanding Self-Employment Tax for LLCs

Why You Pay Too Much In Taxes

There is no duty for a citizen to pay more in tax than their minimum legal obligation.

Are you using every deduction you’re entitled to?

Do you even know which deductions you’re entitled to?

Do you have a system for tracking your deductions and keeping your receipts?

If you answered “no” to any of the above questions, you could be overpaying taxes by thousands.

Save thousands by mastering the tax code for small business with the Ultimate Tax Guide.

Unrecorded deductions are the main reason for small businesses paying too much tax. Learn how to get your accounting in order and maximize your deductions.

Reduce your risk of a tax audit by 90% by incorporating. not rated yet

We found some intriguing results when comparing tax audit rates between individuals filing as Sole Proprietors on a Schedule C vs. LLC members filing a 1065 partnership return. Can you really reduce your chance of an audit by up to 90% simply by forming an LLC?

The truth about taking business tax deductions.

Have Your LLC Tax Questions Answered.

Ask your LLC tax question here, and I’ll answer it right on this site. No obligation, nothing to buy, no email address needed.

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What Other Visitors Have Asked

Click below to see questions from other visitors to this page…

need to file return for LLC
Do I need to file a return for an LLC that did no business at all in 2008? LLC is between me and my three brothers. No revenue, no expenses, no activity …

Established LLC/S Corp investing in a new LLC 
I am a 50% partner in an LLC/S Corp. My partner and I want to establish a second business (unrelated to first) first as an investment (hopefully for tax …

contributing capital?
I have an LLC, we are starting to run low on funds as our LLC was established for our ghost hunting club. This was so we could legally accept funds for …

Does LLC protect a business in a divorce?
If I have been working a business by myself, can I form an LLC and have my business protected in case of a divorce?

Answer

Are you already married? …

Home address as LLC address
Using your home address for your LLC address, won’t that be a bit confusing in terms of your personal bills, utilities, even to your mail carrier, etc? …

registered agent
hi
I wish to be the registered agent to my llc company in Virginia.

What is the form do I need to fill in and submit to VA state corporation commission …

Multi Member LLC and SE tax
I am an employee of a company and pay my appropriate taxes through my paycheck. I also own 50% of an LLC of which I trade securities through. Do I have …

Do I need to set up an LLC to trade stocks?
Starting out as a part time private stock investor. However, have invested $ already in training programs, and will continue to travel to classes, and …

I am an actor. Should I incorporate myself and will that help with writeoffs?
I am an actor and keep diligent records of all my expenses for tax purposes. I am being audited this year because of this. Would incorporating myself be …

How an LLC owner manages overseas software developers
Hi,

This is Mehul again. I am an owner of a Single Member LLC, which is currently operation as consulting firm.

I have my friend working from overseas …

Expense reimbursement only
Can you just pay a partner for expenses and not an actual compensation fee?
We have just started and have agreed that if we can withhold from paying …

Can a single member LLC elect to expense organizational costs on their individual tax return
When an individual incurs organizational costs while setting up their single member LLC, are they able to elect to amortize and/or expense organizational …

Bank Refuses to move property into LLC
I opened an LLC for the purposes of owning rental property. However, after forming the LLC and asking the bank about it, the mortgage bank indicated that …

Deductible business expense questions answered – laptop, equipment, property taxes
The business is in it’s first year and is a new partnership LLC (two members); should a laptop purchased be a deduction for start-up or amortized as a …

LLC or S Corp for independent contractor therapist

I am going to be an independent contractor occupational therapist. I am not sure if I should start an LLC or S corp. If I start an LLC can I write …

Taxation of LLCs Q&A — Readers’ Questions Answered
A rental real estate property is owned jointly by a married couple. For liability protection, the asset will be moved to an LLC . What are the tax implications …

LLC Owned by Husband and Wife
I know single member LLC treated as pass through. But what about husband and wife filing jointly. How do we file to get the pass through?

Answer

Filing Your LLC Tax Return When Your Company Made Little or No Money
We began a start up company in 2008 as an llc, we are just getting started and our production is not even running yet. We have made no income from our …

What Tax Forms for an LLC is used for Rental Investment Property?
We have a 10 member LLC used for Investments.
We file the 1065, with K-1’s sent out to each member.

This year, 2 members got a Loan, purchased a Rental …

Maine (or other state) LLC versus Delaware LLC
Greetings,

I need to form a company that will maintain a home office (primary office) in my personal residence in Maine (1 of 2 physical offices, the …

How to Pay Yourself as the Owner of an LLC
What is the difference between owner’s draws and guaranteed payments? I take a draw each month based on the net profit in the LLC for the month so the …

Single-member LLC veil piercing protection
I am in the process of filing to form my LLC company. I was going to file for it to be treated as a single-member LLC, but how real is the possibility …

Adding Member
I started my LLC in 2008, and I got an EIN for single-member. Now I need to add my dad to the LLC. So, I am going to get a new EIN.

Do I need to file …

Paying LLC taxes
I just formed my LLC in September of this year. I have yet to make a profit due to still trying to purchase necessary equipment, etc. Next year, if I have …

Keep money in the LLC
With a single member LLC the questions here are concerning most of the times how to “pay yourself”/how to get money from the LLC bank account.
What happens …

llc tax advantages and disadvantages
I looking to start my own LLC and I was wondering what the tax advantages and tax disadvantages are to being an llc?

Answer

The main advantages …

paying members of an llc for services performed
Is it possible for a Member of an LLC to become an employee of the Company and receive a regular salary?

In a related question, I have an LLC that received …

Single Member LLC – Texas :: Franchise Tax
Do single member LLC’s in Texas avoid the payment of the Texas franchise tax (margin tax)?

Answer

Unfortunately, no.

According to the the …

where I can get a list of LLC tax deduction items
where I can get a list of LLC tax deduction items?

Answer

Henry, excellent question, that I’m going to have to get back to you on.

The general …

I’m forming a real estate LLC with concerns about taxation
My goal is to acquire 3 new properties a year and then rent each property to tenants. There are 7 other members of this LLC. What is the best way to arrange …

payroll taxes for pllc vs. pc
i formed a pc and now realize i have to pay myself via payroll and deduct taxes and send to irs etc…if i convert to a pllc can i take draws as i please …

LLC Tax Questions
We have a Florida corporation that is over a year old and has never made any money. Do we need to file tax statements for the year or pay penalties for …

Related Questions

  • I just formed my LLC in September of this year. I have yet to make a profit due to still…