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.
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.
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.
Return to LLC Made Easy home.
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What Other Visitors Have Asked
Click below to see questions from other visitors to this page...
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 ...
How to classify myself under an llc so that at the end of the year I dont pay FICA on my divdends?
How do I to classify myself under an llc so that at the end of the year I dont pay FICA on my dividends? I had heard there is a way to accomplish this!...
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 ...
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 incorperating myself be ...
sole proprietorship to single member LLC?
Not rated yet
Thank you very much for your help.
Should I convert my sole proprietorship (and EIN #) to a single member LLC? if so, how do I estimate the "fair value ...
LLC after January 1st?
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Hi, I am thinking on forming a single member LLC in NY.
Is there any benefit on waiting until January 1st to file my papers?
thanks
Answer
The ...
Established LLC/S Corp investing in a new LLC
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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 ...
In Arizona a multi member LLC has losses-is there anything to file?
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If an Arizona LLC has losses, are there any legal forms to file?
Answer
Only if you want to reduce your taxes :)
This applies to all LLCs, not ...
Adding Member
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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 ...
Old Sole Proprietorship, New SMLLC: How to Handle Taxes?
Not rated yet
I have filed a Schedule C with my tax return for years for a very small business I have that in recent years has some-but-not-much income annually. I have ...
Paying LLC owners a bonus with minimal tax impact?
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Is it possible to avoid additional tax burden by paying the owners of a LLC a incentive pay for staying or making a company profitable?
Would this ...
I have a LLC for snowplow removal but no expenses
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I have a LLC for snowplow removal but no expenses. My friend own a snowplowing business in which I help him. I have opened my own LLC and he pays the ...
when do i pay taxes and how much
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I just started my business snowplowing. I will probably make around $2000.00 between now and March. How do I pay taxes, four times a year or just at ...
will my business taxes affect my personal taxes
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i started a business and i have a tax id for the business. will this effect my personal taxes when i file with my wife.
Answer
Yes, assuming that ...
Paying Taxes
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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 ...
Paying LLC Taxes
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If you don't make a profit from your LLC, do you pay taxes on the money you put in the business?
Answer
If your LLC has a loss (revenues - expenses ...
can I use my LLC as a deduction for my personal income?
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Can I use my LLC as a deduction for my person income taxes, and if so how do I?
Answer
Assuming that your LLC is taxed as a partnership or sole ...
LLC structure for a retailer in San Francisco?
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I own a retail store in France. I want to open the same in San Francisco. Is an LLc the right choice?
Thank you.
Answer
Are you a US citizen?
The ...
Keep money in the LLC
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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 ...
paying members of an llc for services performed
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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 ...
LLC Tax classification
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We are a 3 member family owned and operated LLC located in Maryland. We have no employees and do all the work ourselves. We are primarily women owned ...
to incorporate now or later ?
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Do you have to an existing business to incorporate ?
Or can you incorporate now and open the business later ?
Answer
You can form your limited ...
member tax return required
Not rated yet
My employer changed from a corporation to an LLC. What will I receive in place of the W2? Will i just file my normal 1040 with Schedule Se.
Answer ...
Single Member LLC - Texas :: Franchise Tax
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Do single member LLC's in Texas avoid the payment of the Texas franchise tax (margin tax)?
Answer
Unfortunately, no.
According to the the ...
Does LLC protect a business in a divorce?
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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?...
My Wife and I are going into business together
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My father owns a small counseling service (llc) that my wife and are going to be taking over. How should we set this up? Should it be under one of our ...
if income is under 2k do I need to pay taxes on that
Not rated yet
We are a club, garden state ghost hunters LLC. We went LLC so as we can have small ghost tours to generate funds to help our club obtain equipment.
Neither ...
Taxing profits from a LLC that have already been taxed
Not rated yet
I have a lot of cash in my LLC. I have been paying taxes on the profits for years via a regular payroll so the money in my LLC has been taxed once. Now ...
where I can get a list of LLC tax deduction items
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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 ...
how best fo "pay self", employees, in single member LLC
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Hi, thanks so much for your help and information.
My question concerns the best way to structure budgeting for paying employees and myself in a single ...
Home address as LLC address
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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?...
Sales & Use Tax
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I would like to start a telephone survey llc in Connecticut. I am unsure if this new company will be subject to Sales & Use Tax for selling respondent ...
I'm forming a real estate LLC with concerns about taxation
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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 ...
I have an in home child care
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I want to know if I can claim rent, utilities, home and health insurance, internet service, phone, and food(children's meals) that I puchase on my taxes ...
LLC and Franchise Tax
Not rated yet
If your SMLLC is organized in Texas but doesn't operate in Texas, is it still obligated to pay franchise tax?
Answer
Unfortunately, yes. Failure ...
paying yourself in an LLC
Not rated yet
When paying myself in my LLC, can i simply make online transfers to my personal checking account?
If so, how often will you recommend i do this throughout ...
payroll taxes for pllc vs. pc
Not rated yet
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 ...
Corporation Never Made A Dime, Do We Have To File Taxes?
Not rated yet
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 ...
Tax Help Reimbursements / Deductions with LLC
Not rated yet
I have a business bank account. All of my payments from the website go directly the LLC bank account. I have done some research and I've been reading that ...
Do i have to file personal income from paychecks made from own LLC?
Not rated yet
I have an LLC, if I make myself a pay check every month, do i have to file personal income? meaning that I'd have to file taxes for the LLC, and personal ...
Credit cards
Not rated yet
Too much on credit cards,for personal use not LLC,what can I do with this debt ?
Answer
I'm not sure exactly what your question has to do with ...
Multi Member LLC and SE tax
Not rated yet
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?
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Starting out as a part time private stock investor. However, have invested $ already in training programs, and will continue to travel to classes, and ...
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