RE: Sec. 1706 of the Tax Code

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Author: Rusty Ramser
Date:  
To: 'Main PLUG discussion list'
Subject: RE: Sec. 1706 of the Tax Code
"Forming an LLC in AZ is simple ... and takes 3 or 4 hours (for a beginner) over about 6 weeks."
It's even easier than you realise. It should take about 1 hour (2 at the absolute most) over the course of a single Saturday afternoon. If you want to hand-carry your forms into the government office in downtown Phoenix that processes them, that will add a few hours during the work week. But barring that, it's absurdly easy to set up an LLC. There are plenty of lawyers, CPAs, etc. that are happy to charge you a hefty fee to handle the paperwork of establishing an LLC -- don't fall for that rubbish.

Cheers.


-----Original Message-----
From: PLUG-discuss [mailto:plug-discuss-bounces@lists.phxlinux.org] On Behalf Of Keith Smith
Sent: Friday, 9 December 2016 04:01
To: Main PLUG discussion list
Subject: Sec. 1706 of the Tax Code


David, you have brought up Sec. 1706 of the Tax Code several times over the years. I am not familiar, however from what you describe it sounds like it prohibits a programmer from becoming a sole proprietor, however it sounds like it does not stop agencies from doing contract work.

What is an agency?

I'll read Sec. 1706 of the Tax Code when I get done with my current project and have more time.

Sounds like the solution is to form an Limited Liability Company (LLC).
My accountant says it is legitimate to form an LLC and be a one man band and to have only one client. He say that is a legit business.

Forming an LLC in AZ is simple. Fill out the forms the state provides pay your fee with the filing and publish. I think it costs about $85 and takes 3 or 4 hours (for a beginner) over about 6 weeks.

Anyone have any thoughts?

--
Keith Smith
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