Business questions

[randy41]

i think the op should go consult a tax professional and not admit to fraud on a public forum.

 

[teejk]

i think the op should go consult a tax professional and not admit to fraud on a public forum.

Yeah...I kinda cringed at that also. Btw, he has plenty of company out there. The underground economy is thriving.

 

[goeduck]

Anyone know if you can transfer existing privately held assets into an LLC without going through a transfer of ownership triggering a taxable event?

 

[2458n]

New tax rate on corp is 20%. Tax professional needed as everything is new.

 

[TheMan419]

Formation of LLC genrenally has two concerns.

First is tax consequences. Usually zero because you set the llc up as a pass through entity. One owner and the llc income shows up on your 1040. With the new tax code that should become law in the next week there is a tax break for llc that is a pass through entity

Second is liability. You can help shield your personal assets. If you are sued you are only hit for the assets of the llc.

That all said my wife trains horses. For $1600/yr she has a $2m insurance policy. For $500/yr we have an additional $1m umbrella policy. That covers me in my business as well.

Release and signage likely have state required wording. Indiana does. If you use it your liability is way reduced. If you don稚 use the magic language you are in trouble.

Find a good lawyer versed in equine liability in your state.

 

[smstonypoint]

Anyone know if you can transfer existing privately held assets into an LLC without going through a transfer of ownership triggering a taxable event?

Just curious -- why you would want to do so? It seems to me that asset ownership by the LLC exposes those assets to liability and defeats one of the purposes of forming the LLC in the first place.

I don't know if it is still the case, but there used to be tax advantages to leasing your personal assets to your LLC.

Steve

 

[nybirdman]

I have run a small (cash mostly) business for 15 years.I think the best advice I could give is to hire a good CPA and purchase liability insurance;mine is one million dollars for one thousand per year.
My insurance required a liability waiver to be signed once per year/customer.
Bonus is that you can write any expenses off;I.E. tractor,four wheelers,fuel,feed ect.

 

[daking2959]

There is no LLC for federal tax, it is a limited liability company recognized by states. A business files a schedule C/F for a sole proprietor, a partnership if more than one owner/member, or a corporate tax return if a corporation. For income tax purposes, a LLC is a disregarded entity and taxed the same as a schedule C/F for income tax and social security tax.
One exception to this is to elect to be taxed as a s-corporation even though you aren't a corporation, but then you need to be an employee of the Corp and pay payroll taxes and the cost associated with all of that.
My advice would be to get good insurance coverage and keep it a cash side business/hobby.
Being a LLC will not offer the protection many people think when you are actively involved and own the property. If something happens, they will sue the LLC, you personally because you "neglected" to do something and you as property owner.
I own a farm and am a CPA.

 

[plowhog]

alot of checks from too many different banks to be driving around cashing them at each individual bank to keep everything off the books

This is a huge red flag. I suggest fixing the underlying problem immediately, which is the willingness to cheat, etc. You seem to have all the necessary ingredients to be very successful. If you keep on the path of cutting corners and not operating professionally it will continue to expand and eventually explode. I've seen it happen over and over with others.

My suggestion is to spend some money and engage a good local attorney and CPA for advice. People here offer good help but they don't know all of your circumstances, probably also many are not familiar with specific laws in your state. So what worked for them in their state might be bad advice for you in your state. A good local attorney and CPA will get you oriented in the best possible ways, in compliance with laws, etc. Not to mention also a good insurance policy. Yes, they are expensive, but not in the long run. Your entire future is threatened if the "underground economy" continues.

 

[PJ The Kid]

Thank you all for the advice. I was mostly just wanting to know if it would even be worth looking into a CPA and attorney of if I should just limit income and intake for the time being. Looking like I will be consulting professionals in the matter thanks to the advice from yall. I am hoping to go full time with this business in the years to come when I am tenured in my retirement at my main job. (only reason I am not fully jumping in is the health insurance and retirement I have now are great, and we all know that you cant cowboy forever, gotta have the retirement to fall back on.)