Re: LLC Tax Questions
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Okay, so I spoke to a professional the other day and am now more confused than I was before speaking with him. Perhaps someone with some knowledge can enlighten this for me or PM me if they are feeling exceptionally bold to help with my questions.
1) I am in AL.
2) Sole owner of aforementioned LLC.
3) CPA mentioned something about "disregarded entity", such that my income all passes through to my schedule C.
4) Taxed as an S Corp.
5) I am creating this LLC not so much for the liability worries since there are effectively none, but instead for the tax benefits.
My questions are:
1) If I do not have to file anything for the LLC (lest I think my nominal form and fee for it being in existence), I could likely simplify this out with using a business credit card and basic accounting, correct? (I assume I'd just deduct all expenses before I pass on income to me.)
2) Would I still be able to purchase a company car, buy health insurance for employees etc etc. all under the corporate umbrella and write them off before the pass through?
3) My biggest question, since I am taxing as an S-Corp can I still split out dividends after paying myself a fair wage?
Feel free to ask any questions that may illuminate WTF is going on. I'm in the midst of significant confusion.
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What tax benefits does a single-member LLC have over a proprietorship? I don't believe there are any.
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