Should I set up an LLC?

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Old 07-26-20, 07:25 AM
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Should I set up an LLC?

I retired a few years ago so I have no income other than investment income. My wife still works and makes a very good income. We file jointly.

This year Iíve been asked to help my old company work their way through some issues so Iíll make approx $20k as a ďconsultantĒ. For 2021, I anticipate earning maybe another $5-7k and then donít know if Iíll have any more opportunities after that.

Is it worth it for me to have an LLC and run the income through that? Is there much advantage to this from a tax planning standpoint? Are there other things Iím not considering that I should be?

Thanks,
 
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Old 07-26-20, 10:47 AM
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LLC's are there to limit your personal liability. Had one when we had a building company, but for consulting work, especially for that small amount of income, there really isnt much that anyone could or would sue for!

But always a good idea to talk to a lawyer!
 
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Old 07-26-20, 05:17 PM
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I was mostly thinking of tax advantages to save a few bucks on taxes as well as possibly writing off some car/phone expenses. Seems pretty easy to set up an LLC so why not?
 
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Old 07-27-20, 04:58 AM
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llc just passes income directly to owners, no tax advantage, you would need to be able to set up a home business, similar to what my wife currently does but there are lots of requirements/restrictions. Way to difficult to determine the pros/cons in a forum, need to talk to legal/accountant!
 
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