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I was surprized that he created a LLC to run his wedding. Is this normal for high budget weddings ? What might be advantages of doing so? Just curious.
by hpagey 13y ago
I was surprized that he created a LLC to run his wedding. Is this normal for high budget weddings ? What might be advantages of doing so? Just curious.
- rplst8 13y agoAnything you or your wife buy for you wedding is not tax deductable. Anything a corporation, LLC, or company buys can be treated as an expense as a consumable. I'm not sure what revenue the LLC would have, so it would probably take a loss, which then can be written off on personal taxes as "income/loss from a business." That's my guess.
- uvdiv 13y agoNo such thing. IRS won't let you reclassify personal consumption as business losses just by creating an LLC for it: https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_183 https://en.wikipedia.org/wiki/Internal_Revenue_Code_section_... ("hobby loss rule")
- raleec 13y agoWould the LLC structure also protect him in case they decided to fine him $100 million? It'd probably protect him in case a wild animal bit one of his guests. It's relatively cheap protection when so many things can go wrong.
- rplst8 13y agoYes, it separates financial liability from personal assets. Another good reason that I forgot to mention.
- gohrt 13y agoThe courts can and often do pierce the veil of sham LLCs like this. The LLCs main use (still bad), is that if LLC1 runs up a debt of a billion dollars, LLC2 might be protected from it.
- wavefunction 13y agoWow, even more douchey.