Tax Benefits of LLC

**Cognition** · 01-14-2007 06:32 PM

My business partner and I will be filing for our LLC shortly - I understand the asset protection of such an entity, but someone please show me the taxation benefits of an LLC or will we have to resort to other entity formats such as Inc?

**Cognition** · 01-14-2007 10:03 PM

Don't everyone respond at once!

**new_freedoms_ruddell** · 01-14-2007 10:51 PM

So i actually read a book on incorporating. I would sugget the book by the rich dad company. It was a great book for me and me friend and I are incorperating to protect our income from MLM.

http://secure.richdad.com/product.as...Books&keyword=

you can get it at any libray in the financial section but I would suggest this book and all of his books. He is an amazing business writer. Just take a look at it for yourself.

**Cognition** · 01-14-2007 10:55 PM

^I already have it.

He doesn't address my question in the book.

**SSM** · 01-15-2007 03:49 AM

A lot of LLC info can be found by searching google. But I will do a quick rundown, which will ultimately lead to you searching google anyways.

LLC - avoids the double taxation of a corp. Allows you to directly tax your income (meaning what you pay yourself from the earnings of the LLC)...pay yourself nothing and dont get taxed.

I doubt anyone on here is licensed to do taxes so you should probably consult with a tax lawyer or like an H&R Block.