QUESTION
How to keep personal and business taxes seperate in a LLC small business
Asked on Feb 29th, 2012 on Business Law - North Carolina
More details to this question:
I would like to start a small hardwood flooring business with 3 to 4 employess. I will keep my full time job and only make about 200 a week from my business. How can I keep it to where my personal taxes and business taxes are seperated? I was thinking of going LLC.
1 ANSWER
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You can form an LLC and elect to have it taxed as a corporation, in which case it will be a separate entity for tax purposes. However, this will vastly multiply your tax filing burden and will not provide you with the principal benefit of a single-member LLC, which is the ability to "ignore" it for tax purposes and simply report the income on your own Schedule C. If you go the "corporation" route, you will have to file corporation state and federal tax returns and will possibly have to engage an accountant to do so.
Answered on Mar 01st, 2012 at 7:03 AM