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-   -   Does opening LLC helps in tax savings on 1099 (https://www.askmehelpdesk.com/showthread.php?t=375531)

  • Jul 14, 2009, 11:16 AM
    snee2u
    Does opening LLC helps in tax savings on 1099
    HI,

    I am into software industry working as software consultant in CA.

    I am working as an independent contractor. I get my 1099 from my company where I work.

    My question is that If I open an LLC, does it help in saving taxes on 1099? How difficult is opening an LLC? What kind of tax savings I can make with an LLC on 1099?

    Your quick response is really appreciated.

    Regards,
    Snee2u
  • Jul 15, 2009, 10:32 AM
    AtlantaTaxExpert
    The LLC is a legal entity designed to be a "poor man's corporation", and is NOT a tax entity. Most LLCs continue to be taxed as a sole proprietorship, which means there are no savings.

    Your best option for tax savings is using the subchapter-S corporation, but only if your income is somewhat high (in the $250K range).

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