Articles

If you form a one-person Limited Liability Company, the following will occur

  1. You get your Employer ID Number from IRS
  2. IRS tells you that your LLC will be a “disregarded entity, and may
  3. Suggest that you file as a self employed person.
  4. DO NOT DO THAT.
    1. Self-employed taxpayers are liable for the self-employment tax, over 12%.
    2. We suggest that you make an election to be taxed as an “S corporation.”
    3. The profit from your business is “passed through” to your personal return.
    4. You pay quarterly estimates on that tax throughout the year.
    5. This could be a significant savings.
    6. I am licensed only in Pennsylvania, but I can direct you to a reputable practitioner in your own state.
    7. Consult with your tax professional to be sure OR
    8. Check out our website: www.daviddunnlaw.com OR
    9. Give us a call. We can help. 610-972-2494; AskDave@daviddunnlaw.com