Practically speaking, setting up an LLC is the best way to live life, because of the way tax law works. Most people don't do it, but you can save so much money doing corporation stuff. Technically, every individual is also a corporation, hence the use of social security number and filings. Being married becomes a corporate merger of two corporations, so two people filing with their own socials, and than filing for the family, the second corporation. Kids become the same thing, etc
I had an LLC at one point. I could be wrong, but I thought that the only real advantage to it would have been if I got sued in business…they’d have to sue “the company” instead of me as an individual..hence “limited liability”…
Am I missing something else?
I don’t recall my tax situation being any better or worse than otherwise.
It used to be that an LLC could be used as a passthrough, and you could mitigate your own earnings by claiming they were the companies. However, they could have changed all the rules since 20 years ago
Right, that's still the way it is, but I'm not sure what the actual tax benefit is at all.
Filing your taxes is just doing a earnings report proving you get a "refund" or you didn't "pay" enough. Funny how that terminology works.
Governments have been making more and more professions ineligible to work under their own small business. Years ago anyone could work any full time job as a contractor and file business tax deductions for the cost of commuting, etc. Too many people caught on and started doing it, so now you have to meet strict criteria to qualify as an independent business.
(post is archived)