Has anyone talked to an attorney about this? On 2016-12-08 17:10, David Schwartz wrote: > This thread IS about my original grievance — Sec. 1706 of the Tax > Code > > It says so right there in the Subject line. > > You’re a real estate professional lecturing computer consultants on > stuff that works nicely in the real estate profession. > > It can be harmful in THIS profession. Because of 1706. Which has > nothing to do with either LLCs or Real Estate. > > But there ARE companies who WILL NOT HIRE SINGLE-MEMBER LLC’S AS > CONTRACTORS for gigs in computer-related high-tech gigs. > > I’m not aware that situation exists in real estate. Are you? > > What advice do you have for those of us who have LLCs and someone will > only hire us as contractors if we’re either a C or S Corp? > > THAT is the topic at hand. It’s irrelevant how simple it is to set > up LLCs if people won’t hire your LLC. > > If that was the case in real estate, you probably wouldn’t be using > them, right? > > -David "The Tool Wiz" Schwartz > >> On Dec 8, 2016, at 6:48 PM, 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 [1] >> 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 [2] >> >> --------------------------------------------------- >> 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 [3] > --------------------------------------------------- > 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 [4] > > > Links: > ------ > [1] > https://u2206659.ct.sendgrid.net/wf/click?upn=tzJbcg2o-2FNh3kfIF32sRUUEfAUrPlRdODloCrKUTDLEe1Xr5sB7TGzxKSs-2BD8fg9_6lpMB7VLnN-2Fj9-2FEErg8-2F-2BMBpb5QxlByTgv2M3fbWD9ebvC-2BWrN3h7jImK8EVWYBeKRW4yrs59mwQltWw1TlFtLCMC-2B5cnU0264VQjgJOC5GFzr-2Bj4wik2Mv85C3Cc4xoI-2FBtmaMZLU1X7JvFsTPKDww1VCf4TriziZJkbteHegMvMb8m0Rqxic0CFQ8MZHpGYphK-2BxTba4RvxbDlPQhdQ4syk2Mv2OGBpGOXujSqWiw-3D > [2] > https://u2206659.ct.sendgrid.net/wf/click?upn=3cK2FVJjyu2N-2Bxco034fZnnbK2LIZIfnojzH-2BPzZg719bV7hL2TJnC2UduzrwTqYFT6KRTGnVKmzvcAKMPt79XrrgQnt-2BSNUlminq-2F76bJx9ZjtqcTQrqktkVt4owoc319cITVAwLk-2BOQMb9wm1aTEIeL5bE5CnOiigdLaja-2FV7Nhw7GT4DrHEkMbdEKMmavkjE7veYmbT4e6KFkih-2FOxCTHdQNYHVIEz-2B4ypziKQc5XHN4kB1j-2FuhIDb2ikWU6RqN2N9p1qXuvZXynCL54yGwQvOjgNy0XcR3VhYdauJ-2FQNDIqPlox23BTST1xXhVNe4uNxMdKKQ8OhwWoSEfRY4Pye7JrdEYC64eX4TPd-2FykuUI9gWuluO7q8z-2BoeZI6oQG7v-2FFWz1E-2Feua1JgTZg87TAeBjCONsmnCgke31l0jifmIC-2Fx407Vq64ZCPjWwvQFos-2BRVvdfSvT8ttejqNvbDC07xaHE9-2BnB1e17N6sF8aMKmoNsRtw4jr1BVKxR1HbRT28CKz-2FQL9-2BSS4yOGPjOSQ-3D-3D_6lpMB7VLnN-2Fj9-2FEErg8-2F-2BMBpb5QxlByTgv2M3fbWD9ebvC-2BWrN3h7jImK8EVWYBeKRW4yrs59mwQltWw1TlFtIalWYkC6-2BF4-2BmkGxzJjiEf-2FEMGTdnQSCEQb-2FkA5BsemQxQ82GjNODfGfeDaXALKA2BZrmTTIiKn1kE24MgZmYTbNFM39OPqhcL1fmFSc6wNFRy6l7kS2qaGu9LkMgNSAXGzr9nuctJU3D8efy84jvY-3D > [3] > https://u2206659.ct.sendgrid.net/wf/click?upn=5DvWGaZUY8Sh5aRLWfQTKYiRLVzunonVk948p8WIzMe-2FXlJ9Cta8w8U9xoku9LrUSHNMJbSd3ZEwH-2BqnW2UHlA-3D-3D_6lpMB7VLnN-2Fj9-2FEErg8-2F-2BMBpb5QxlByTgv2M3fbWD9ebvC-2BWrN3h7jImK8EVWYBeKRW4yrs59mwQltWw1TlFtONEtphN-2FB8pS4lOjhWzGVsjUAlQ72Lzqp9gvLSjUPbeuryDYe7DStS-2FVNkLpf-2BUD9w8r2P4DD9USbxSZPKVOgBNYpVGYe4m-2FSmqVTL50bbxr7D1wR-2FlUtoY6F82bLN6agga25-2FrXh-2B3jaEpRAkOj5g-3D > [4] > https://u2206659.ct.sendgrid.net/wf/click?upn=5DvWGaZUY8Sh5aRLWfQTKYiRLVzunonVk948p8WIzMe-2FXlJ9Cta8w8U9xoku9LrUSHNMJbSd3ZEwH-2BqnW2UHlA-3D-3D_6lpMB7VLnN-2Fj9-2FEErg8-2F-2BMBpb5QxlByTgv2M3fbWD9ebvC-2BWrN3h7jImK8EVWYBeKRW4yrs59mwQltWw1TlFtLyjTrZKkGNgmpSVNwlmbDVoYd0L6GwblRgyALpXgS360kcPhySuWZTYiifHbIwzbdibpZN5d8FaGnjdL9cwzYwtcNnm4soP-2FrJTqB6kQQEZpr8QQfcnuFWD8e8u1HjC4-2FmeL0lKZ554XIHOM7YSRRw-3D > > --------------------------------------------------- > 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