You Don’t Know What You Don’t Know!

• Establish an LLC taxed as an S-Corp for all his self-employed income.  Savings of $8,000 in Social Security and Medicare taxes.
• Peter was not utilizing the home office deduction. $2,000 savings lost…
• Peter could have qualified as a real estate professional and used his passive losses to offset his active income. (Not sure how much exactly this will save, but it will be thousands.)
• Peter’s accountant listed all of his new tool purchases on schedule E. Instead of offsetting his active income, he offset his passive income. He lost a bunch of money there.  (The tools should have been deducted from his schedule C).
• Peter had all his eggs in one basket.  If the restoration business had been sued, he put his mobile home park at risk.
• Peter could have also been charging his restoration business a property management fee to manage his mobile home park, which would have more savings.
• Peter should have built business credit years ago. He needs a new home but can’t afford to buy when his score is at 580! 
• Since Peter formed his own LLC, it’s most likely worthless when he gets sued. He’s only filed the articles of organization with the secretary of state, nothing else…  Can you say, “ALTER EGO?” 

With NCH, the state’s top business formation service, you can register your LLC in Nevada quickly and easily. Our specialists will help you choose the right entity for your company and understand why an LLC in Nevada is your best option. We’ll assist you with all necessary Nevada LLC forms, including the vital Articles of Organization, and help you comply with state regulations. In addition, we offer expert assistance with tax compliance, credit building, and payroll management. Schedule a private consultation to explore effective solutions to minimize tax liabilities and protect your wealth. Start unleashing your LLC’s full potential today with NCH. Schedule a consultation with Adam Kintigh today!

DISCLAIMER: The above material has been prepared for informational purposes only, containing opinions of the provider, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.