Year-End Tax Saving Tip #2: LLCs & Conversions

Today, we are talking about your entity selection. How do you know which entity is right for your business? Many attorneys and others may tell you that an LLC is the best selection, but that option often leaves you paying a lot more in taxes.

Ready for another Year-End Tax Tip?

Today, we are talking about your entity selection. How do you know which entity is right for your business? Many attorneys and others may tell you that an LLC is the best selection, but that option often leaves you paying a lot more in taxes.

If you find yourself making over $20,000 to $40,000 as a single member LLC, it may be time to talk you your accountant or tax professional about possibly doing what’s called an “entity conversion”. Basically, you are just switching your business from one entity to another that may be better suited for you and your business situation.

Now remember, entity conversion is not something that just any accountant or tax professional can do. Many do not understand the process and paperwork needed to successfully make this change.

The end of the year is a good time to work on this, as accountants tend to be less busy during the end of the year. Many of the things you can do to save yourself some money during tax time need to be complete by the end of the year; for you to benefit from those changes and save some money this year.