Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing

Reply
 
Thread Tools Display Modes
  #1  
Old 08-29-2007, 03:42 PM
Thremp Thremp is offline
Senior Member
 
Join Date: Nov 2005
Location: Free Kyleb
Posts: 10,163
Default 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.
Reply With Quote
  #2  
Old 08-29-2007, 04:09 PM
BradleyT BradleyT is offline
Senior Member
 
Join Date: Dec 2003
Location: Vote Ron Paul 08
Posts: 7,087
Default 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
Reply With Quote
  #3  
Old 08-29-2007, 04:25 PM
Phone Booth Phone Booth is offline
Senior Member
 
Join Date: Aug 2006
Posts: 241
Default 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.
Reply With Quote
  #4  
Old 08-29-2007, 05:43 PM
Thremp Thremp is offline
Senior Member
 
Join Date: Nov 2005
Location: Free Kyleb
Posts: 10,163
Default 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.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 09:26 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.