Common errors setting up LLC

Before you decide setting up your legal entity, we highly recommend that you discuss taxation with your CPA or tax professional. Request a report that outlines your estimated federal & state taxes based on your projected income. It should provide the following information.

  1. Tax classification for your entity: While your CPA/tax professional may handle most of your tax & financials, as a business owner or entrepreneur a basic understanding of how S Corporation or C Corporation may impact your taxes would be very helpful to you in the long run.
  2. Business deductions: Request your tax professional or CPA to provide you a list of business deductions. You may be eligible for several business deductions eg: Startup expenses of $5,000 even before your business has started.

Ensure you are aware of your overall federal and state tax obligations. This will help you avoid any surprises at the time of tax filing.

 


Posted In: Company Formation

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