Taxes Made Simple

If you've done any reading on the matter, you know that there are several ways you might benefit from forming an LLC. For example, operating your business as an LLC (instead of as a sole proprietorship) can protect you from having unlimited liability for lawsuits related to your business.

However, in addition to all of the advantages to LLCs that you always hear about, there are a few more benefits that for some reason often go unmentioned by accountants, attorneys, and informational websites.

So here they are. The Hidden Benefits of Forming an LLC:

1. Your attorney earns $1,000 by doing all the paperwork for you.

Yes, forming an LLC is a great idea. And he'd be more than happy to help you do it.

2. Your accountant makes an extra $200 every year by filing your state tax return for your LLC.

No, LLC taxation isn't complicated. For the most part, LLCs are taxed exactly like sole proprietorships. There are simply a couple more forms that need to be filled out. But don't worry. Your accountant can take care of those for you.

3. Your state's Department of Revenue gets to charge you a "franchise tax."

Oh it's just a small $800 annual fee. After all, with all of these benefits, you wouldn't expect having an LLC to be free would you?

[Sorry about the brief rant. Here's a less sarcastic and somewhat more thorough explanation of the pros and cons of LLCs/S-Corp/C-Corp.]

For More Information, Take a Look at My Latest Book

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A Testimonial from a reader on Amazon:

"A very concise and practical guide to the formation, taxation and legal differences between Sole Proprietorships, Corporations and everything in between. Very easily read with a simplified presentation makes this a great introduction to help you decide how to form your business." - Michael J Reed

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