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LLC discussion thread

Gameface

Gameface

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So this thread is here so that you can explain your best tips and tricks when running an LLC so I can steal all your stuff and use it for myself.

I just created an LLC to deal with my crypto mining income. Here are some questions I have.

Better to pay myself a wage or take profits?

If I "hire" my kid to maintain my operation do I have to pay FICA and **** like that?

If I lease my LLC space in my house do I have to claim the income from the lease as personal income?

If I make a lot of investment in equipment in 2021 that exceeds revenue by a lot can I claim some of it in 2022 when I'm in profit mode?

Anything else I don't know that I don't know?
 
LLC tips are great, but don't forget about money laundering tips too. Ozark and BB will teach you, realistically, every thing you need to know about how to do it properly. :)
 
Archie Moses said:
LLC tips are great, but don't forget about money laundering tips too. Ozark and BB will teach you, realistically, every thing you need to know about how to do it properly. :)
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That's what I was really asking for but didn't want to tip off the IRS.
 
Gameface said:
If I "hire" my kid to maintain my operation do I have to pay FICA and **** like that?
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I know this one. If you hire the kid as a contractor, they have to pay FICA on their wages quarterly, so you wage offer should reflect that. You will also still need to report what you paid them to the IRS, IIRC.
 
One Brow said:
I know this one. If you hire the kid as a contractor, they have to pay FICA on their wages quarterly, so you wage offer should reflect that. You will also still need to report what you paid them to the IRS, IIRC.
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I think that if I make my kid a "member" of the LLC then I don't have to pay FICA. I'm not 100%.

I'm actually gonna talk to a financial advisor about this stuff I think.
 
Gameface said:
I think that if I make my kid a "member" of the LLC then I don't have to pay FICA. I'm not 100%.

I'm actually gonna talk to a financial advisor about this stuff I think.
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If the kid is a part owner and is therefore sharing the profits, then no. If you are paying them a specific amount, someone will need to pay FICA.
 
I’m not an LLC (S Corp), and I don’t know if the rules are different, but I might be able to answer some of the questions.
Any wage that’s paid will need to have FICA paid. You might be better off to have her create her own LLC and hire her as an independent contractor. She would then be responsible to pay her own taxes, though. Anything under $600 for the year doesn’t have to be reported to the IRS though.
About the wage vs. profit sharing, speak to an accountant about it. I pay myself a salary and then let my business pay for a crap ton of stuff (I personally don’t pay a dime for my vehicle expenses, either my truck or my wife’s suburban. The business pays for all 4 of our cell phones.)
Leasing a space in your home as an office can be tricky, from what I hear. It’s supposed to be a 100% dedicated space, with a locked door. Again, if you lease it for less than $600 for the year, i don’t think it would have to be reported as personal income.
You can realistically claim the increase in the electricity costs though. Maybe have proof of the increase (power bills from pre-mining vs post-mining) just in case of an audit.
As far as buying equipment, my accountant gives me the option to claim all or part of the costs in the year of purchase.

I think a lot would be determined by how far and big you want to take the business.


Sent from my iPhone using JazzFanz mobile app
 
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bigb said:
I’m not an LLC (S Corp), and I don’t know if the rules are different, but I might be able to answer some of the questions.
Any wage that’s paid will need to have FICA paid. You might be better off to have her create her own LLC and hire her as an independent contractor. She would then be responsible to pay her own taxes, though. Anything under $600 for the year doesn’t have to be reported to the IRS though.
About the wage vs. profit sharing, speak to an accountant about it. I pay myself a salary and then let my business pay for a crap ton of stuff (I personally don’t pay a dime for my vehicle expenses, either my truck or my wife’s suburban. The business pays for all 4 of our cell phones.)
Leasing a space in your home as an office can be tricky, from what I hear. It’s supposed to be a 100% dedicated space, with a locked door. Again, if you lease it for less than $600 for the year, i don’t think it would have to be reported as personal income.
You can realistically claim the increase in the electricity costs though. Maybe have proof of the increase (power bills from pre-mining vs post-mining) just in case of an audit.
As far as buying equipment, my accountant gives me the option to claim all or part of the costs in the year of purchase.

I think a lot would be determined by how far and big you want to take the business.


Sent from my iPhone using JazzFanz mobile app
Click to expand...
Thanks a lot man!
 
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