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    3 Replies Latest reply on Apr 23, 2009 4:21 PM by dublincpa

    Started an LLC should I stay a disregarded entity?

    chmura09 Newbie
      Hey everyone, I'm new here
      I have an Internet Marketing business, everything happens online.
      Right now I only make around 2.2k/mo and spend around $400/mo on the business.
      My LLC is a single member LLC and I've been thinking of changing that, but I don't know what the benefits would be for me.
      I'm 19 and have no expenses besides food, clothes, cell phone and fuel.
      What would you guys recommend I do to save money when the tax day comes?
      Many thanks in advance
        • Re: Started an LLC should I stay a disregarded entity?
          dublincpa Scout
          I will ask the same questions I would ask someone who is not 19.

          What state are you in?

          Will you be trying to recruit employees?

          Are you trying to save for retirement?

          Do you have/need health insurance? Do you have medical expenses/prescriptions?

          Do you have a significant other or dependents to be concerned with?
            • Re: Started an LLC should I stay a disregarded entity?
              chmura Newbie
              What state are you in?

              Located in Chicago, IL

              Will you be trying to recruit employees?

              No, I won't have any employees.

              Are you trying to save for retirement?

              Yes, I am planning to start saving for retirement.

              Do you have/need health insurance? Do you have medical expenses/prescriptions?

              Don't have it and have no medical expenses, but I am planning to get a part time job to get benefits.

              Do you have a significant other or dependents to be concerned with?

              No I don't.
                • Re: Started an LLC should I stay a disregarded entity?
                  dublincpa Scout
                  I would recommend staying disregarded entity or sole prop unless you want for some reason to set yourself up for payroll and withholding instead of paying estimated taxes.

                  You can do pretty much everything you want to with the default classification. The main difference is that for medical insurance and retirement benefits, you will pay self employment tax on the "employer" contributions.

                  I am in the suburbs of Chicago. Feel free to contact me at bankcardcpaatgmail.com if you have any additional questions.