Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
We will be snagged by AMT in 09.
Wife is starting a consulting business. I suspect her expenses will exceed her revenue in 09. Let's say she has $5,000 in revenue and $10,000 in cost.
Should I set up an LLC or S-corp in 2009 ? If there's no financial advantage in 08, I'd rather wait to see if consulting stuff pans out.
Would being in AMT world change anything ? Is below true:
Without LLC: the $5,000 revenue would add to our AGI and increase our tax. The expenses would not be deductible (below the 5% threshold).
With LLC: the LLC would transfer a net loss of $5K to our personal return. But our taxes would probably not fall - because of AMT.
Thanks for any input !!!!
Wife is starting a consulting business. I suspect her expenses will exceed her revenue in 09. Let's say she has $5,000 in revenue and $10,000 in cost.
Should I set up an LLC or S-corp in 2009 ? If there's no financial advantage in 08, I'd rather wait to see if consulting stuff pans out.
Would being in AMT world change anything ? Is below true:
Without LLC: the $5,000 revenue would add to our AGI and increase our tax. The expenses would not be deductible (below the 5% threshold).
With LLC: the LLC would transfer a net loss of $5K to our personal return. But our taxes would probably not fall - because of AMT.
Thanks for any input !!!!