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2

An LLC protects you from liability, but for contract development work there's likely no need to set one up as you aren't typically exposed to much liability risk in that context. For tax purposes, LLC doesn't really mean anything to the IRS. If you have a single-member LLC, it will be taxed as a sole-proprietorship, or you can elect to have it taxed as an S-...


4

https://www.incfile.com/blog/post/do-llcs-get-1099/ If you’re trying to figure out if your contractor’s LLC gets a 1099 form or not, ask your contractors to fill out an IRS Form W-9, “Request for Taxpayer Identification Number and Certification.” This is a standard step in getting ready for tax time. On this form, your contractors have to check a box ...


2

I am not an accountant so YMMV. Also, tax rates change as they have since the question was posted. In the UK salary employees are paid each month after all taxes. Most UK citizens simply don't think about tax. When you are a freelancer you pay the tax bills yourself. As per the calculations below you may find you pay more taxes than a typical salaried ...


20

Hoo boy. This is a huge mess. TLDR: There's no tax on the withdrawals (most likely). The bigger issue is paying taxes on the LLC's gains all along. Here's the problem: It's very unclear whose taxes the LLC passes through onto (if anyone). You say the LLC is in your name, but your father was doing all the paperwork and taxes. If you weren't adding detail ...


15

My question is, can I get in legal or tax trouble as it is technically "my business" and am "paying" myself? Do I need to claim this or acknowledge it in my own personal taxes? Even though it is only a handful of times a year and for a sum total of less than $1000? Or am I just worrying over nothing? I have read that because it is a single-entity ...


12

I created an LLC for my Dad's business. He does all of the business but it is in my name using my SSN and all that (long story). He does all the operations and handles the taxes and everything. I literally never touch it outside of renewing the license with the state every year. This statement is troubling. You own the LLC, it is in your name and ...


-1

I would keep personal and business separate. LLC allows you to be tax ones maybe a little higher, but you are allowed to claim your deductions which hopefully will compensate and lower it. Now, if you become a CORPORATION you will be tax double because corporations paid about 15% of taxes on profits less than $50,000 but, if you paid yourself, you would ...


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