Posted by John K Haslach, CPA, MST on February 02, 2005 at 16:53:10:
Federally there are no taxes on an LLC if it is taxed as a partnership or SMLLC. Some states do have fees/taxes on LLCs, so it depends on your state. Personally, I would put the property in an LLC AND have plenty of liability insurance.
My CPA says Don’t Go LLC…Help! - Posted by Shane
Posted by Shane on January 29, 2005 at 12:28:01:
I am an investor looking to decrease my liability. I was ready to set up an LLC through my home state and was told by my CPA NOT to because I would end up paying more taxes than I would without one. He suggested an umbrella Ins policy. What should I do?
Re: My CPA says Don’t Go LLC…Help! - Posted by Natalie Smith
Posted by Natalie Smith on February 01, 2005 at 08:06:07:
Are you trying to decrease your legal liability or your tax liability?
Take the CPA’s advice for tax matters and talk to an attorney for the legal matters is my opinion.
Re: My CPA says Don’t Go LLC…Help! - Posted by eric
Posted by eric on January 31, 2005 at 11:04:38:
I think what your CPA is talking about are the “fees” for an LLC. In CA, every LLC must pay an annual franchise fee to the state for the privilage of the limited liability protection. In CA, that fee is $800/year on top of all other taxes (up to $250K gross income. Obove that the fee goes up)
Some financial advisors believe that one should just use the extra “fees” to buy excess or umbrella coverage rather than form an entity. For $800, one can get a fairly large umbrella policy.
There is a lot of debate on which way one should go. If you search the threads in this forum, I am sure that you will find many discussions on this topic both the pros and cons.
Re: My CPA says Don’t Go LLC…Help! - Posted by E
Posted by E on January 29, 2005 at 22:30:50:
He’s crazy. He should very well know that an LLC is a pass through entity which flows the income or losses to the members/partners of the LLC. (unless you specifically elect to have the LLC taxes like a corp).
I’ve got to think that the CPA was talking about something else. Maybe did he say that the paperwork would create more in tax preparation fees?
Re: My CPA says Don’t Go LLC…Help! - Posted by chet
Posted by chet on January 30, 2005 at 22:52:20:
sounds like he was saying jusy buy tons of insurance.
I think that would be more $$$ than an entity of some sort.