In January I started work with another company that paid me as a consultant without a contract. In September I created an LLC to formalize things & get tax advantages. When I pay my taxes can I claim that all the side income I made from Jan to Aug was income of this LLC even though it technically wasn't formed yet?
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1What difference in tax treatment are you expecting?– Grade 'Eh' BaconCommented Nov 4, 2022 at 16:46
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When I pay my taxes can I claim that all the side income I made from Jan to Aug was income of this LLC even though it technically wasn't formed yet?
Obviously, not. How can an entity that doesn't exist earn income?
I created an LLC to formalize things & get tax advantages
There would be absolutely no tax advantages to creating an LLC over sole proprietorship, and there's absolutely no requirement from tax perspective to create one.
answered Nov 4, 2022 at 16:34
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you say "obviously not" but you can do this in the UK so it's not at all obvious. Commented Nov 7, 2022 at 9:15
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@JackAidley the question is tagged "united-states". I don't know what you can do in the UK, but in the US entity that doesn't exist cannot be active. In any case, for tax purposes LLCs are disregarded in the US. Commented Nov 7, 2022 at 16:40
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A US based answer is obviously fine; it is asserting that it is obvious that you can't do this that isn't. It is not obvious because you can in other first world countries. Commented Nov 7, 2022 at 18:05
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@JackAidley can you provide any reference? My common sense tells me that it is impossible to earn income without existing. Commented Nov 7, 2022 at 18:07
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Reference: personal experience :). Can you provide any reference that it is not possible in the US? I think this answer needs it. Commented Nov 8, 2022 at 8:00