Starting an LLC/ Own Authority

From what my accountant has recently told me an LLC is a must!! I’m just relaying what I was told! A LLC basically separates your personal assets like your home from your business. So even though you are the owner of the Llc god forbid someone try’s to sue you for let’s say a accident your involved in they can only sue your LLC not you personally. Now I know this is America and you can basically sue anyone but pretty much that’s what it’s for to separate your personal assets from your business. My accountant told me I’d be dumb not to get one especially because it literally cost no more then 300$ one more thing I’ll say is when it comes to taxes an LLC is the way to go. Meaning if your a LLC compared to incorporated (inc) you pay less tax’s. Someone who is LLC files one tax return someone who has a business that’s a inc has to file 2 returns one for business one for personal. I know because my family business is inc.

 

LLC? Limited Liability Corporation or S Corporation or any other type are all Incorporations thus all are considered an “Inc.”

 

Yes I misunderstood s Corp my apologies. Like I said I’m no expert just relaying what I was told. All I do know is LLC is the way to go now according to my Account because you pay less taxes. Incorporated is more old school (like my old man lol) but It all depends on what your trying to do and from my understanding the size of your company. End of the day even if your the only employee of your company be safe make a LLC. It cost basically nothing protect urself. I did mine myself online very easy!

 

LLC taxes as S Corp is what I do.

And sign things as member instead of owner. That’s one way they can pierce your LLC so I’m told.

This year you can erase 20% of your tax burden due to Trumps new tax plan. Still need to find the right balance with your depreciation schedule but a nice bonus for small businesses like an LLC.

 

Like someone already said. A LLC will not protect you if you are the driver and you get in an accident. Both the LLC and you as the driver will be named in the lawsuit.
If you file one tax return (pass trough LLC) there are no tax advantages, none. I will seriously consider a new account. The guy supposed to be a professional and you are getting better advice from truck drivers.

 

I appreciate the information!! Like I said I’m just repeating what I was told I’ll definitely be looking into this thanku!!

 

Definitely look into it.

It can save you some $ in the end.

As one poster noted. It’s still pretty much a pass through, unless you set it up properly.

As far as asset protection. A trust for personal assets. A DUN for business credit applications.

There are a 1000 ways to skin a cat. The guys that tell you it’s better to do it their way (while the cat is alive) have never skinned a cat.

Have a lengthy conversation with your accountant.

 

I’ve been running under S Corp for 22 yrs now. Really don’t understand the difference between LLC and S Corp. Only once about 10 yrs ago I read in Landline their Tax advice column said it was best way to go. I was glad to hear that LOL. Tax Proffesional are definitely worth paying for. Too many chances for surprise Tax burdens.Laws always changing. While interest isn’t high Penalties on unpaid balances are charged on monthly basis.They found a mistake 11 mo. After filing and doubled what I owed. Penalties stop once payments are arranged but interest continues to incur till paid. What a mess it was.