Re:Tell HN: Submit comments on IRS guidance to SEC 174 expenses
by dboreham on Saturday November 04, 2023 @02:53PM
(#38144016)
Ianaa (I do own an LLC, an S-corp and a C-corp doing software though), but this sounds fishy. Besides some details at the margin such as payroll taxes, tax treatment (how much tax $y is owed on revenue $x) should be roughly the same regardless of the legal entity type.
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Re:Tell HN: Submit comments on IRS guidance to SEC 174 expenses
by gavinhoward on Saturday November 04, 2023 @03:12PM
(#38144164)
The accountant explained it this way: did money change "hands"?
If money went from the LLC into a "wage," it changed "hands." The IRS wants in on that.
If work went from the owner into an LLC, no money changed hands, and the IRS doesn't care.
But the very fact that people do S Corps shows that there is different tax treatment though.
Re:Tell HN: Submit comments on IRS guidance to SEC 174 expenses
by SkyPuncher on Monday November 06, 2023 @08:42AM
(#38162447)
Single member LLC should really be its own business type in most states. Lots of special rules apply to them and only them.
The benefits of S and C corps don’t really come into play with single member LLC