#1
|
|||
|
|||
LLC Tax Questions
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. |
#2
|
|||
|
|||
Re: LLC Tax Questions
If you buy a company car you deduct that on your schedule C. It's not "before" the pass through but it's a $50,000 expense - essentially the same thing as what you're thinking. Basically your personal income for the year is going to be $450,000 and you're going to have $300,000 in expenses (deductions).
Here's a decent 4 page article - How LLC's are taxed |
#3
|
|||
|
|||
Re: LLC Tax Questions
[ QUOTE ]
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. [/ QUOTE ] What tax benefits does a single-member LLC have over a proprietorship? I don't believe there are any. |
#4
|
|||
|
|||
Re: LLC Tax Questions
Bradley,
I can structure the pass through as distributions or salary however I'd like... Or... http://www.bankrate.com/brm/news/biz.../20001102a.asp No clue what that is. Phone Booth, I thought there were some retirement benefits, but it seems it is looking more and more confusing. Dividends were the main reason though. |
|
|