The Tax Benefits of an LLC

Written by Phil Thow.

When you go into business as a sole proprietorship, you are responsible for paying quarterly taxes and to make sure all of your business taxes are properly accounted for. If you owe more than $1,000 when April 15^th rolls around, you will be responsible for a penalty on top of having to pay the large tax bill you already owe. One decision you have to make is determining whether or not you should incorporate your business. If you are wondering how to set up a Nevada Corporation. With over 25 years of helping businesses set up a Nevada LLC or a Nevada Corporation, they can help you get started with your business and to start saving money.

The best way to keep more money in your pockets and less money sent to Uncle Sam, you need to consider forming a Nevada LLC. A Nevada LLC is a Limited Liability Company which means it offers you all the flexibility of running your business as a partnership but you have protection that a corporation has, meaning that it is a separate entity from your personal assets. However you will only pay taxes once with a Nevada LLC and they can be filed with your personal tax returns, just like you have done as a sole proprietorship.

It is important to speak with your CPA to find out if declaring a Nevada Corporation or a Nevada LLC is the right move for you. Here are some of the tax benefits you can expect to receive from a Nevada LLC:

• Individuals can claim losses for the business on your personal income taxes
• If you owe the majority of the business, you will pay the taxes on your personal income taxes, even if you have a partner that splits it 60/40.
• Taxes are only deducted on the expenses and losses of the company; this can cut your tax bill significantly and save you a ton of money when tax time rolls around.