LLC Taxes

Limited Liability Company Tax – How to Save Your Company Money in Taxes

To save your company a lot of money in taxes, it is a smart business move to take advantage of a limited liability company tax. What this means is that your company as a whole is not taxed, so you do not have to pay taxes twice like with other company titles. If your company is just starting out, this may not sound like a big deal, but you will after a few years of paying taxes twice on the same earnings. The reason this is even possible is because, in an LLC, the members report the profits and losses on individual tax returns because the company itself cannot be taxed.

This limited liability company tax saving is completely different from corporate companies and even sole proprietorships. With corporations, you have to tax the company’s profits and losses as a company, and then also as a shareholder in their individual tax returns. Depending on how well your company did that year, you are looking at paying a good deal of it into taxes. It really just makes more business sense to try to save as much money as you can. You can do that by forming an LLC. This taxing is known as double taxation and can be avoided with an LLC.
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Forming an LLC – Great Tax Benefits for Small Businesses

If you still are involved in the paperwork section of forming your small business, you know that taxes are going to play a huge part of your life for many years to come. Everything has to be triple checked to avoid any mistakes with the IRS. Because of this, it makes sense to do everything you can to help yourself save some money in taxes. One way to do that is by forming an LLC. This stands for Limited Liability Company and includes many tax benefits for small businesses. One of the great selling features for many people is that there is surprisingly little paperwork, which even can be done online.

Forming an LLC for a small business basically gives them many of the same benefits and protections they would find if they formed a corporation but with one major addition. The tax benefits with an LLC greatly outweigh those of a corporation or even a sole proprietorship. The main tax benefit that draws in so many people is that you will not have to pay taxes twice. Usually, you have to pay the taxes earned by the company, and then pay the taxes you earned as an individual. With an LLC, you pay them once and then you are done with it.
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