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Starting an LLC

by Ronshaugen, Performer

  • Created: September 13, 2010, 1:52 pm
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3 comments

I just registered a new business with my state as an LLC.  I am not sure if it is more tax advantageous to register as tax classification D= disregarded entity or P= partnership

 

I am doing freelance creative and my wife is helping me with book keeping...

 

Any advice?

Tags: Discuss Popular Topics, Starting & Registering a Business
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phanio | Contributor | 9/15/2010 - 9:41 am

Hard question to answer becuase your individual tax situation would also come into play. Not sure you want to hear this - but take some time and spend a little money with your CPA. A little money now can really save you a lot of expense in the future.
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JimD | Former Moderator | 9/15/2010 - 7:52 am

Ronshaugen, Take a look at this IRS article Single Member Limited Liability Companies. Let me know if this helps. JimD

LLClaw | Window Shopper | 9/14/2010 - 4:50 am

It depends. If you are operating as a single member LLC then the D classification would probably be the way to go. If you have a partner who is not your wife, then you may want the pass through taxation option. ---This post was edited to remove a commercial link. Read our discussion policies for more Community best practices.