Today’s Post: 

LLC Tax Rate and how it might affect your business

Hello, this is your LLC Guru, welcome to our site where we help regular people get their own LLCs quickly, inexpensively, and with confidence!  If you need an LLC or are even thinking about getting one, you have come to the right place.  Here at YourLLCGuru.com, we’ll help you get your own LLC in about 10 minutes!

Before we start I would like to mention that this is in no way legal or tax advice. 

We get questions quite a bit about whether forming an LLC is going to increase or decrease the amount of taxes a business owner is going to pay.  This is a good question because you sure don’t want to pay any more taxes than you legally owe.

An LLC is a “pass-through entity” which means that as far as the IRS is concerned it doesn’t really exist.  In this instance, profits, losses, or deductions “pass-through” the LLC and are all reported on the owner’s personal tax return. In an LLC with multiple members, the profits or losses are divided and each member would report profits and losses on their personal tax return as well. 

LLCs avoid the double tax C corporations must pay because they pass all company income through to the tax returns of the individual owners This is a big advantage for LLC’s. 

A corporation is a legal structure in which the owners, or shareholders, are taxed separately from the entity. C corporations are the most common type of corporation and are also subject to corporate income tax. This taxes the profits from the business twice, at both the corporate and personal level, creating a double taxation situation you want to avoid. 

So, for the average small business owner, an LLC provides the best solution in almost every case!:

Let’s look at the benefits you get with an LLC that comes with really no downside and takes around 10 minutes or so to get with the proper guidance:

• You get huge liability protection! This alone is what it’s all about!
• You get simplicity comparable to a sole proprietorship!
• You avoid the double taxation most corporations pay!
• Your business will gain legitimacy!
• You can sleep sound at night knowing you made the right choice and that you & your family are protected from unnecessary liability related to your business activities!

So an LLC is the perfect business entity, with liability protection, and pass-through taxation, an advantage over a corporation in most normal cases.

If you’re doing ANY form of business without the protection of a business entity then get yourself covered today! An LLC is a perfect choice for nearly every business out there!

In my next post, we will unpack more details around LLC’s.  Please check out some of my other posts and/or videos on YouTube so you can learn more helpful information about LLCs and how to use them to protect yourself in business. This is your LLC Guru thanks for reading!