LLCs

LLCs have no tax meaning. LLCs are taxed as sole proprietors, partnerships or corporations, just as they would have been taxed if you had not formed the LLC. The key to an LLC is the legal protection you get. In order to make this protection stand up in court, you must do everything in your power to keep the LLC “clean.” It must be treated as a separate entity and all business finances must be treated as separate and distinct from the individual’s finances. Too many people muddy up the books by paying personal expenses from the LLC checkbook. Keep it clean!!!

Please note that forming an LLC or partnership, or incorporating, involves a certain amount of legal work. I encourage all clients to get appropriate legal advice. I am not an attorney and do not help with legal issues.