DO YOU HAVE AN LLC? HERE'S WHAT MANY PEOPLE DON'T KNOW
Many people open an LLC thinking it will automatically lower their taxes or that they no longer have to worry about certain tax responsibilities. However, there are several important details you should know.
An LLC can offer benefits and help organize a business, but opening an LLC does not automatically mean lower taxes or eliminate obligations with the IRS.
Some important things you should know: • An LLC does not automatically eliminate taxes • You must keep organized records • IT IS IMPORTANT TO SEPARATE PERSONAL EXPENSES FROM BUSINESS EXPENSES • Depending on your situation, additional requirements may apply
Common mistakes many people make: • Thinking an LLC means "no taxes" • Mixing personal money with business money • Not saving receipts or records • Opening an LLC and forgetting important tax obligations
Now more than ever it is important to: ✔ Keep a separate bank account for the business ✔ Save receipts and important documents ✔ Keep income and expenses organized ✔ Review your tax obligations throughout the year ✔ Ask questions before making important decisions
Many business owners discover problems when tax season arrives because they never properly organized their records.
If you have an LLC or are thinking about opening one and have questions about how it could affect your taxes, call us today at 314-330-4425.
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