LLC’s Are NOT About Taxes
One of my favorite facts from history.... and I'll give you a couple seconds to guess.... where do croissants come from?
1...2...3...
Correct! Austria! And yes, that's true. I know, mind blowing!
Okay, okay, now a tax one... what's the number one way LLCs help you tax wise, Drew? Correct, they don't help with taxes, they separate liability!
Okay, I know this all sounds sarcastic right, but I promise you.... getting an LLC isn't about taxes, it's for liability for your business. Whether you're 1099, a single member llc, or a partnership, your taxes work the same. Maybe you fill out a different form, but you're getting taxed the same.
One other thing is that generally most firms charge significantly more to prepare and file a business return, like S Corp or partnership, than a schedule c for a 1099 or single member llc.
So before you open that LLC, let's make sure you understand why you're doing it. Yes, it separates liability and if you become an S Corp then you'll skip the self employment tax.... and at the same time you have more filing and compliance fees due both to the government and your tax guy.
Now, these are all good questions to ask and topics to review so hopefully you got something out of this. Plus here's a clip of JT at a conference going over some basics with a new solo business owner. Enjoy
