11 votes

Forming an LLC to reduce personal income

The question was reopened so I'll rewrite my answer tailored more to this specific use case. First of all - LLC is a legal entity, what you're looking for is a tax entity. It can be an LLC, or it can ...
littleadv's user avatar
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3 votes
Accepted

How to file 1040NR form as a non-resident alien owner of a U.S. LLC in Wyoming?

Years passed since I posted this question. I need to clarify that foreign non-resident owner of US LLC don't need to file 1040NR unless you have Effectively Connected Income (ECI). So to simplify this ...
user3509046's user avatar
3 votes

Which LLC is best if you are going to be hiring freelancers?

I am researching the best LLC type for tax purposes to create LLCs serve no purpose for tax, they're either disregarded entities or taxed as S-Corp. Creating LLC for tax purposes is a meaningless ...
littleadv's user avatar
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3 votes

I was a W2 taxpayer now a new 1099 tax payer with a newly formed LLC with EIN number

In the US, W2 and tax returns are required to show ability to earn and history of income, which would be sufficient to pay off the loan being taken out. Usually banks use income to debt ratio of about ...
littleadv's user avatar
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3 votes

Is it better to get a resale certificate or register an LLC in CA?

The legal entity choice is orthogonal to the taxes questions. Your choice of legal entity doesn't change anything with regards to resale certificate or whether you can deduct expenses or not. LLC is ...
littleadv's user avatar
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2 votes

Multi Member LLC Fraud

Depends on where it is going. If it's being pocketed by the individuals, it's probably embezzlement. If it's simply being spent as fast as it comes in, or faster, it may be entirely normal for that ...
keshlam's user avatar
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2 votes

LLC tax for non US citizen

In the US, unless you explicitly elected otherwise, LLC is invisible for Federal income tax. If it's a single-member LLC (i.e.: you own 100% of it) and you made no election - the revenue just flows ...
littleadv's user avatar
  • 174k
2 votes

Filing for a patent application as person vs an LLC

to draft a patent for my app. Are you sure it's not a scam? You might want to consult with another attorney on this, generally patents on software even if given are hard to enforce. But, irrelevant ...
littleadv's user avatar
  • 174k
1 vote

Tax filing requirements for inactive LLC filing as S Corp

I believe Schedule B and Schedule K are required, and others may be needed depending on the situation.
littleadv's user avatar
  • 174k
1 vote

Do I need to file form 5472?

You have not filed the form 2553 to have the LLC being treated as a corporation, as such part V applies and it sounds like you do need to file if there were contributions and formation costs. Better ...
littleadv's user avatar
  • 174k
1 vote

How split LLC income between spouses in tax form?

What if we had an operating agreement with, say, a split of 10/90? But you don't. You have an agreement with a 50/50 split. Whether you file as a QJV on Schedule C or as a partnership with 1065, you ...
littleadv's user avatar
  • 174k
1 vote

Understanding S-Corp election timeline

According to the IRS, the form is due within 2.5 months of the beginning of the first tax year during which you want the election to become active. Also, according to the IRS, the deadline for S-Corp ...
littleadv's user avatar
  • 174k
1 vote

Contribution from personal checking account to Solo 401k as Single-Member LLC

Your LLC is a disregarded entity from tax perspective, so it doesn't matter at all. For liability protection it is generally advised to completely separate business funds from personal, but that's not ...
littleadv's user avatar
  • 174k
1 vote

401k Contributions Guidance for Two-Member LLC in a Community Property State

Both of us were actively involved in the LLC's operations, each contributing more than 500 hours of work (met material participation test). This is confusing. How come you earned 200K and your spouse ...
littleadv's user avatar
  • 174k

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