The limited liability corporation or LLC is one of the most popular entity choices for small business owners. And for good reason. An LLC is relatively simple to form and, as the name suggests, it provides a limited amount of liability protection for business owners.
Nevertheless, some business owners are often unaware that an LLC has no inherent tax advantages (because, as our readers know, the Feds disregard it for tax purposes) over other types of entities (or even no entity at all). You should always be encouraged to make your entity choice based on a variety of factors, including both potential tax treatment and the administrative burden associated with it.
How do you use an LLC to save tax, and better yet ensure it isn’t costing you more than it needs to? Keep reading to find out.