Tax Law (Questions About Taxes)/tax

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QUESTION: Is there any tax advantage for me of having an llc for a internet business?

ANSWER: that is way too much open ended and need much more information.

there are LOTs of good tax and non tax reasons to be an LLc and probably more for S corp status.

that is like asking if you should have a license to open a store.  need more information.

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QUESTION: I have an online magazine, and I also do contract work for local engineers. I want to put both businesses under the same llc in the simplest low maintenance way possible. I have been doing contract work using my personal name. I think I should make up a business name for it? I want to save money during tax time and have some sort of personal protection so i thought about an llc.

Answer
the contract work for engineers is where you have possible exposure (not to sound too  much like a lawyer) but can't you fix that with either insurance or via risk shifting to the engineers?  

I have cpa insurance and an llc, but my real risk is when I perform services without an engagement letter which specifies the terms and conditions.  

the cost of setting up an llc is pretty minimal and if you own it 100%< it shows up on your federal return just like sole proprietor does now (on schedule C).  so the incremental cost is the state filing, registrations and state licenses etc.  not a huge hurdle.  

save money does not change. if you could have (and should have) deducted expenses as a sole proprietor or self employed, those expenses would still show up on your llc. you dont get any real new ones.  or you dont create expenses or deductions out of thin air because you are an llc.  

one thing the llc does give you is a certain level of panache. instead of patrick the tax guy, I am The Tax Star LLC instead.  much cooler if you are trying to project.  

you can check with a local attorney or even file the state paperwork for free. If you are so inclined, the full service package at legal zoom is pretty cool; they can do all the state filings and registrations and all that.  

good luck

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

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19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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