Today we answer Joe’s question…should a VA be an LLC and what are the tax advantages?
Resources:
IRS
Form 2553-Election by a Small Business Corporation
Should a VA be an LLC and what are the tax advantages?
About Candy
My name is Candy and I own OffAssist. I've been a VA since February 2002 and work full time with my husband at it. We have been very successful and I am always being asked for just 2 minutes of my time. This is my way of giving everyone... "just 2 minutes of my time". Enjoy and please ask away!Subscribe
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One Response to Should a VA be an LLC and what are the tax advantages?
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Lots of good points, as usual, Candy. I have so many clients who make themselves an LLC “for the protection” but can’t answer basic questions about it when asked: 1. Why did you form an LLC? 2. How are you being taxed? 3. What is this going to cost you?
An attorney I trust a lot put it this way, if you are a single owner LLC/Corporation there’s a thin veil of protection. If you are in the wrong and you are the sole owner, you can still be held personally liable. So, be sure you know what you’re doing before making an legal entity changes. It could really cost you A LOT if you make the wrong decision for your situation.