It was me. My current accountant says a one person LLC doing business with a one company is a legit business. On 2016-12-08 16:48, Vara La Fey wrote: > I was clarifying generalized things for the poster who mentioned LLC > as a suggestion from his accountant. > > Was that poster you?? Then you're welcome. Was it someone else?? Then > correct my errors or kindly stick to your original grievance. > > - Vara > - www.facebook.com/vara.lafey [3] > On Dec 8, 2016 4:39 PM, "David Schwartz" > wrote: > >> I’m not sure what the point of these “Rah Rah for LLC!” posts >> is all about. Nobody has said anything to the contrary. >> >> This list is primarily for people who work in the "high tech" (i.e., >> computing) industry, which is SPECIFICALLY what Sec. 1706 of the Tax >> Code deals with. >> >> If you’re in Real Estate, Accounting, Architecture, or whatever, >> 1706 does not apply to you. It’s very, VERY NARROW in its >> applicability — BY DESIGN. >> >> Sec. 1706 eliminates the “safe harbor” provisions for people who >> work as contractors, eliminating any “benefit of the doubt” that >> is historically given in most other professions, and instead >> subjects workers and the companies that employ them to a vague >> 22-point (IIRC) series of questions that an IRS Auditor can use to >> establish whether someone should be (or should have been) regarded >> as a “contractor” or “employee” for tax purposes. >> >> The problem is, this is not something that is adjudicated when you >> hire on, and it does not matter how many reams of paperwork you sign >> that says it’s one thing or the other. >> >> It’s a ticking time-bomb that applies in the vast majority of >> cases 3-5 years AFTER THE FACT when the person — usually hired as >> a contract worker at the time — is audited by the IRS for whatever >> reason, and the auditor reviews one of his employment situations and >> subjects it to the 22-point “test”. If he rules the person was >> acting as a “contractor”, all is fine. >> >> But if he rules the person should have been treated as an >> “employee”, both the person and the erstwhile “employer” >> just got nuked. >> >> The back-due taxes assessed to the “employer", plus accrued >> penalties and interest, typically amount to far more than whatever >> the person was paid. The company has no knowledge anything went awry >> until they suddenly get a bill from the IRS. >> >> Meanwhile, the person in question now has to “unwind” any >> business expenses and deductions, as well as anything that depended >> on them such as retirement contributions, FICA/FUTA/UI set-asides, >> etc. Everything is up-ended and needs to be re-filed. >> >> And to add insult to injury, the same auditor is likely to flag >> previous and subsequent years for auditing as well, and what do you >> think he’s going to rule on other contract gigs that were >> fundamentally the same situations as the first one he nuked? >> >> Again, if you’re not in the high-tech industry, this does not >> apply to you. >> >> Having a single-member LLC stand-in to protect you against such >> situations can be helpful, IF the company you want to work with is >> willing to hire you. Many are not because of problems discussed in >> other threads. >> >> -David "The Tool Wiz" Schwartz >> >>> On Dec 8, 2016, at 4:53 PM, Vara La Fey >>> wrote: >>> >>> Yes, you can be the only user ("Manager" and "Member") of an LLC. >>> I did it for years in real estate, and still have my LLC. >>> >>> IIRC the form takes more like 5 min. You publish your intended LLC >>> in the Record Reporter for 6 weeks. I forget the cost, but it's >>> fairly cheap and easy. And IIRC, the Sec of State office (or >>> wherever I went) has a form for that too. >>> >>> LLCs are almost zero maintenance and are not sublect to hostile >>> takeover. And so easy that some real estate investors create one >>> for each property, just to keep properties legally isolated from >>> each other for basic liability reasons. An LLC name like ">> address>, LLC" is one of those. (So named cause the investor >>> realized that pretty names would be silly and confusing.) >>> >>> Good luck!! :-) >>> >>> - Vara >>> - www.facebook.com/vara.lafey [1] >> >> --------------------------------------------------- >> PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org >> To subscribe, unsubscribe, or to change your mail settings: >> http://lists.phxlinux.org/mailman/listinfo/plug-discuss [2] > > > Links: > ------ > [1] > https://u2206659.ct.sendgrid.net/wf/click?upn=tzJbcg2o-2FNh3kfIF32sRUUEfAUrPlRdODloCrKUTDLEe1Xr5sB7TGzxKSs-2BD8fg9_6lpMB7VLnN-2Fj9-2FEErg8-2F-2BMBpb5QxlByTgv2M3fbWD9ebvC-2BWrN3h7jImK8EVWYBeAxMmDgWQUd2i68p21gEHYLmzzu8vgCbnR7qSefIuucNhxoTyXijd7R8Jowtg-2FV5Dkz-2BgzFV6-2B2OrsHp91e84j9nNhrCwnc65Eb-2FhBwOPyjAQDAaWiVOu3q4ib0iC0nv-2Ftk2QxRqZ-2FXdFTr-2Buj-2FxL3kNL3-2Fm51aLLtj7-2BtYtEWOY-3D > [2] http://lists.phxlinux.org/mailman/listinfo/plug-discuss > [3] http://www.facebook.com/vara.lafey > > --------------------------------------------------- > PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org > To subscribe, unsubscribe, or to change your mail settings: > http://lists.phxlinux.org/mailman/listinfo/plug-discuss -- Keith Smith --------------------------------------------------- PLUG-discuss mailing list - PLUG-discuss@lists.phxlinux.org To subscribe, unsubscribe, or to change your mail settings: http://lists.phxlinux.org/mailman/listinfo/plug-discuss