NYNistler

Tax Deductions for a Family Business

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38 posts in this topic

1 hour ago, MakoMike said:

Under IRS rules, absent an election a one person llc is treated as a sole proprietorship and a two person llc is treated as a partnership.

I was suggesting he dissolve the LLC and go S-Corp. He’ll have much greater advantages going this route IMO 

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1 hour ago, EricJ said:

.... and legal

Yup.  My entire reason for asking the question is that politicians set up the system to benefit themselves. But they make the rules so convoluted and hard to understand that the average Joe doesn't know they exist. Over the course of the last few years running my own businesses, I have figured out that the average NYNistler can and should take advantage of those rules too. I'm doing my due diligence to find out what is legal and how to do it so I can keep as much of my hard earned money in my pocket instead of someone else putting my money in their pocket.

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6 mins ago, NYNistler said:

But they make the rules so convoluted and hard to understand that the average Joe doesn't know they exist.

nobody is hiding the information. It is just that the average Joe is not industrious enough to go find the info, read it, and then act upon it. Instead he is watching the deadliest catch while complaining about paying so much in taxes.

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1 hour ago, Markushook said:

I was suggesting he dissolve the LLC and go S-Corp. He’ll have much greater advantages going this route IMO 

To do that he would have to form a per se entity, like an Inc. or Corp. under state law and the liquidate the LLC into it,

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2 hours ago, NYNistler said:

Yup.  My entire reason for asking the question is that politicians set up the system to benefit themselves. But they make the rules so convoluted and hard to understand that the average Joe doesn't know they exist. Over the course of the last few years running my own businesses, I have figured out that the average NYNistler can and should take advantage of those rules too. I'm doing my due diligence to find out what is legal and how to do it so I can keep as much of my hard earned money in my pocket instead of someone else putting my money in their pocket.

No better place on earth to do due diligence than the tavern :clap:

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Good morning all. I want to say thanks for the suggestions. I spoke to an accountant last week and got the low down. We will be electing to be taxed as an S-Corp, which will keep quite a bit of money in our pocket. I have an appointment next week to speak with a financial advisor about retirement accounts. It's been an interesting education, and I thank you for your solid advice.

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