Tax Law (Questions About Taxes)/LLC tax reporting via Turbo Tax
I am an expert with AllExperts.com as well (human resources, business consulting, etc.).
I formed an LLC in 2009. I am retired, only work part-time. I use turbo tax (TT) small business and it works fine, combining my LLC small business income and personal income, the personal section is a married filing jointly, my wife and me.
My wife is considering opening up her own LLC, a jewelry business, which is far afield from my human resources consulting business. My question:
Can TT handle two LLC’s, mine and my wife’s and at the same time and still handle the joint filing for personal (non-LLC) income.
And if not, do you have any suggestions.
Thanks for your time.
TT can create multiple iterations of the forms necessary to record multiple businesses.
But. . .
I'd like to take your question a little further, because there is more to see if we change our vantage point.
You are retired. On a pension or just Social Security?
Does your part time consulting business generate Positive Cash flow? Would you like to keep more of it?
Is it your wife's intent to be profitable in the jewelry busimess? Many a business has failed to maintain that point in their goals, and subsequently were successful at missing it.
Do you and your wife need 100% of the revenue that you are now generating just to pay for basic living expenses? Rent, Groceries, Utilities, and Personal Vehicle costs? Or is part of your total family revenue available to invest, or save, or spend on non-necessities?
If you are just on SS, then if you are "successful enough" you will start to lose your SS benefits.
If you and your wife are generating net taxable business revenue, you are paying the higher personal tax rates on it, meaning that you keep less of it to spend than an equally successful business that operates and pay taxes at the business level instead.
If some of the things you are spending your after tax moneys on are business related, such as inventory for the Jewelry business then the personal taxes you are paying on the jewelry revenue is taxed higher and it will be harder to build that business.
But if you are just working for sport, as a "hobby", with no real intent to succeed, then no change is needed. If on the other hand you are playing to win in your businesses then it is time for a change in tactics.
Quit pushing 100% of your business revenue to your personal tax returns. Quit losing business and personal deductions because you have consolidated your different incomes. Quit giving up extra money in taxes that you could use to either grow your businesses faster or simply save for your own use at some point in the future.