LLC. Advice

A single member LLC is a disregarded entity as far as the IRS is concerned. You'll file your taxes just as you would as a sole proprietor. The short & probably overgeneralized explanation is that you'll take your revenues, minus the expenses and any other deductions you are entitled to, and whatever is left over is your taxable income that is used to determine how much you own in income and self-employment taxes.

 

An LLC for a single, O/O with no employees is basically useless. There is no tax advantage, nor are there any liability advantages. However, there is more complicated tax filings! The only reason I keep mine is so I don't have to change years old contracts.

 

Actually, she can if you are the sole owner of the LLC. If you are not the sole owner, she could go after your part of it.

 

She can because the company is an asset for you and on going with you are an employee or as an active participant (managing the company). The only protection that an LLC or a corp would offer in this industry is pension protection, there is still a personal liability involved if you are both an owner and an operator.

 

Do you really trust someone else with your business? Besides, a decent lawyer can pierce that idea, while sitting on the toilet. Just keep up with your child support and remain on your ex's good side, or at least low key to her.