4 ms·
From what I hear it gets morally hazardous fast. Supposedly plenty of people out there with their own one-man LLC, writing off things like lunch with their frie
by sliverstorm 11y ago
From what I hear it gets morally hazardous fast. Supposedly plenty of people out there with their own one-man LLC, writing off things like lunch with their friends, and just about everything else.
- abalashov 11y agoLLCs in particular are a creature of state statute, and are disregarded at both state and federal levels for tax purposes. In other words, they provide the liability protection of a separate entity without paying their own taxes; the underlying tax personality(ies) of an LLC is (are) their owner(s). All this to say, an LLC is in no way required in order to deduct lunch with one's friends. :-) One can do that with a sole proprietorship that has no registered entity or other formal dimensions, effectively immediately. Business expenses can be deducted on the 1040 Schedule C, and anyone who considers themselves to have expenses related to self-employment may avail themselves of that. Obviously, it would be wise to ensure that your business is a legitimate going concern and is in pursuit of revenue and profit. The IRS is not fond of businesses, LLC or not, whose sole raison d'être is to serve as a vehicle for business deductions. :-)