top | item 35619937

(no title)

brntsllvn | 2 years ago

Great resource: https://www.linkedin.com/in/markjkohler/ follow him and learn

Biz tax is a deep topic. Short answer is the LLCs are passthrough, which means you'll receive a k-1 from your accountant that you include in your personal return.

Quick strategy tip: have your accountant apply for S corp status for your LLC. You'll pay less tax right away.

discuss

psyklic|2 years ago

Note in CA, there are additional reporting requirements. This is not tax advice, but I believe passthrough single-member LLCs (including no-income) must file Form 568 by March 15 and pay a mandatory $800 annual fee by April 15. (Other types/taxation methods could have slightly different requirements.)

jawmes8|2 years ago

Can an S corp be single member? What are the drawbacks to using an S corp as opposed to an LLC?

brntsllvn|2 years ago

S Corp is just a tax filing status. Your legal entity remains an LLC.

The benefit of S Corp tax status is that you pay yourself a dividend in addition to your income. They are taxed differently.

The drawback is you now have a payroll obligation.

An LLC can be single member. An LLC with S Corp tax status cam also be single member.

There's a lot of info about S Corp status online. Hopefully this puts the strategy on your radar for more investigation.