NEWS AND ARTICLES

LLC

The Most Misunderstood Concept in Business

An LLC is a designation by the state. It is intended to give your personal assets protection against claims that may be made resulting from your business activities.

 

Simply being an LLC says nothing about the business' tax status before the IRS. If all you do is create an LLC, the IRS will "disregard" the LLC and the income from your LLC must be reported on your personal income tax return. It will be subject to an additional "self-employment tax." 

 

For many of our clients, it makes sense to take the next step to declare to the IRS that you want your LLC to be taxed as a corporation-- either C-Corp or S-Corp.

Among the many advantages of taking this additional step is reduced self-employment or social security taxes, greater retirement plan deductions, and diminished audit risk for higher income taxpayers.

© 2018 by Simon Kelvington, LLC

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