Who Should Form an LLC?

For a self-employed taxpayer or independent contractor, there are very few reasons not to establish a limited liability company. Although it is a relatively new business entity as compared to corporations, partnerships, or sole-proprietorships, it already offers a wealth of flexibility, protection, separation, and other benefits for qualified taxpayers.

Aside from the obvious reason of a lower tax basis, the LLC offers a solid line of separation between a taxpayer’s personal and business liabilities. For an independent contractor who may use one vehicle for both personal errands and for their business, work out out of a home office, or provide a service in other people’s homes, this protection is essential.

Because the LLC is primarily recognized at the state level of taxation, the IRS actually offers the taxpayer options as to exactly how to classify their business at the federal level.

For more information on the ins and outs of incorporating, click here.

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Five Stone Tax
by Five Stone Tax

Five Stone Tax is America’s trusted tax adviser, offering full-service tax solutions with the goal of making sure all of our clients pay the lowest amount of taxes legally possible. As the most effective tax representation company in America, our team consists of the best Tax Attorneys, Enrolled Agents, case managers, and administrators in the industry.

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