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but isnt the tax benefit of a single person LLC just the ability to deduct expenses? Besides forming an LLC he had almost no expenses. And I highly doubt his d
by utnick 18y ago
but isnt the tax benefit of a single person LLC just the ability to deduct expenses? Besides forming an LLC he had almost no expenses.
And I highly doubt his desktop gui is going to be liable for anything right?
- tstegart 18y agoAn $800 incorporation fee is a small price to pay to separate your personal liability from your business liability. Especially if you have other assets, like a house or pension.
- tstegart 18y agoFuture expenses will most likely add up to more than the incorporation fee, so it makes sense. Stuff like traveling, mileage, a new computer, rent if the business expands. As the business grows he will be able to deduct more. However, I believe you can also deduct as a sole proprietorship, so the tax benefits of an LLC are more about removing the double taxation of corporations than being able to deduct expenses. But an LLC makes things clearer and formally separates your business from your personal life, so you can track exactly how well its doing and what expenses and income are associated with each.