LLCs offer limited liability protection exists at the state level but  can be improved by incorporating

The basics

  1. Registering with the IRS
  2. The forms of business recommended by Saafenet
  3. LLCsLLCs are recognized at the state not the federal level
  4. Incorporating or forming an LLC requires special attention
  5. Selecting a fiscal year
  6. Accounting periods and methods
  7. Be certain you have a business the IRS won’t declare a hobby
  8. Documenting operating revenues and expenses
  9. What types of expenses are deductible for your business
  10. documenting mileage expense
  11. Expenses that are not deductible

Advanced Topics

Start-up Issues

  1. If you plan to buy a business, don’t inherit undisclosed tax liabilities

Tax Credits

  1. Avoid the use of Excessive tax credits
  2. Get a tax credit for using plug-in electric vehicles

Payroll

  1. Using the “Work Opportunities Tax Credit”

Year End Filing

  1. Be certain you use the right tax preparer if you won’t be filing on your own tax return
  2. Once you make a profit avoid abusive tax shelters

Retirement

  1. Setting up a 401 K plan when you’re operating alone