Author Topic: To LLC or not?  (Read 767 times)

bigwhitedawg

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To LLC or not?
« on: February 26, 2018, 08:06:46 AM »
My wife and I are both musicians.  For her, its her main gig and includes recording, CD sales, etc.  For me, it's a side hustle that usually nets me an extra $500-$1000 a month. Typically, I have had a nice paying W2 day job, but right now, I'm gaining traction as an IT consultant. We've been filing jointly, both as self employed musicians and with my regular gig.  Would there be any tax benefit to forming an LLC for our music ventures, and a separate one for my consulting gigs?

cfoleverage

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Re: To LLC or not?
« Reply #1 on: March 12, 2018, 09:29:00 AM »
An LLC is more an asset protection and segregation of liability device more than a tax strategy method. Setting up one or more single member LLCs would end up with the same numbers on your Federal returns, but with increased fees and filing costs. You could consider an LLC electing to be taxed as a C-corp or an S-corp if you want to think about different taxation results, but the devil is always in the details, so to speak, and the decision for whether another structure for your business would best be made by a professional who knows all the details.