5 ms·
You can funnel money through an LLC and write it off in addition to your own personal standard deduction.
by selectodude 5y ago
You can funnel money through an LLC and write it off in addition to your own personal standard deduction.
- egypturnash 5y agoHow much will it cost to set up an LLC? How many recurring fees will this incur?
- deleted 5y ago[deleted]
- freeone3000 5y agoDepends on state of incorporation. It's usually a low one-time fee -- Texas is $300. There's also no need to incorporate in a state you are physically present in, but it makes taxes simpler if the state you're in requires state income tax.
- radley 5y agoCalifornia has a minimum $800 annual tax. The first year is waived for any LLC, LP, & LLP set up during 2021-23 due to the pandemic.
- ModernMech 5y agoSetting up an LLC varies by state, but to pay someone else to do this for you (like LegalZoom) it's about $350 + $50 for an EIN. Then there's a filing you have to make every so-many years (like 10 years. I don't know how much that costs).
- kevin_thibedeau 5y agoA tax haven LLC with one employee is going to be exposed as a sham by an audit. The wealthy need staff to run their operations and can credibly claim that they are a legitimate business.
- sakopov 5y agoThis isn't entirely true, but it really depends on how you read OPs point. I know people who have LLC setup to buy rental property. At a very minimum they write off depreciation cost of the properties against their taxes. I wouldn't call it a tax haven LLC though.
- triceratops 5y agoYou can write off rental property depreciation even if you don't have an LLC. Per my extremely limited understanding, the LLC provides a liability shield for your personal assets against litigious tenants (though it won't save you if there was genuine negligence). It can also hide your identity from people trolling property rolls to find wealthy people to sue.