Quote:
Originally posted by ChrisBennet
LLC - protection of a corporation, pay federal corp tax and personal income tax on the same money.
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If I'm not mistaken, if the LLC is a proprietorship or partnership, the income passes through to the individual's personal tax return. I don't think you pay corporate tax on an LLC's income.
luber, a corporation/LLC is good if you need:
1) tax benefits, ie. taking a salary in an S-corp and the remainder as a dividend. If you aren't raking in the dough via your writing gig, then you don't need the corporation.
2) liability protection of a corporation or LLC. Can you liability concern be covered with an umbrella policy?
3) writeoffs - I'm not sure where you're going to get big tax breaks here. If it is a legitimate expense, you can take that deduction on your individual tax return. I may be way off base here.
If your wife is going to sit in a lower tax bracket to save tax, are you going to suffer by filing separately vs jointly.
Just my random thoughts. There are so many facets to this.