Business Formation

Best way to file

Asked Wednesday, October 21, 2026 by Roberto

In order for me to not compromise any benefits such as SSDI, SSI, Medicaid, EBT, Section 8, etc, would it be best to file as a Nonprofit, LLC or Inc.?

Quick Answer:

From a tax and legal perspective, the choice of entity (Nonprofit, LLC, or Inc.) does not automatically protect your government benefits. Most programs like SSI, Medicaid, and SNAP (EBT) have strict *...

Business Formation

Self-built software contributed to my LLC at $0.00: correct?

Asked Wednesday, October 14, 2026 by GONZALO

Sole member of a Wyoming LLC (disregarded). I signed and notarized an assignment contributing software, brands and domains I built personally as a capital contribution; the operating agreement lists them at $0.00 (my basis, nothing capitalized). 1) Is $0.00 right for the capital account or should it be fair market value, and does it matter for tax? 2) On a later sale, is the LLC's basis my carryover basis? 3) Company costs I paid personally are booked as contributions, not loans. Cleaner?

Quick Answer:

1) For tax purposes, your basis in the capital account is generally your **carryover basis** ($0.00), not Fair Market Value (FMV). Under Section 721 (applied by analogy to disregarded entities), contr...

Business Formation

Starting side business as wedding musican

Asked Monday, August 31, 2026 by Mark

I am looking to start a side business as a wedding musician, wondering if I need to register as an LLC or as sole proprietorship.

Quick Answer:

From a federal tax perspective, the IRS generally views a single-member LLC and a sole proprietorship as the same thing: **disregarded entities**. In both cases, you will report your income and expen...

Business Formation

under 35 k profit LLC online sales what is % of tax for sole properitor in Tx

Asked Saturday, August 01, 2026 by ahmad

i need to know only income is, profit under 35k in a full yr. how much is tax , at least bear minimum i have to pay in Texas all types of taxes both i have to pay federal and state. i am newly forming a business and need to decide on strategy .

Quick Answer:

In Texas, there is **no personal income tax** and **no state-level corporate income tax** for most small businesses. Texas also has a "Franchise Tax," but you will owe **$0** because your revenue is w...

Business Formation

Business expenses

Asked Friday, July 31, 2026 by Alan

Started a trucking business on June 1, 2026 worked for another company until July 15, 2026. Do I include my expenses in my software for the time that I worked for that other company because they paid me and I did not incur those expenses under my own company, I incurred those expenses under their company while I was working for them.

Quick Answer:

No, you generally should not include expenses incurred while working as an employee for another company in your own business's accounting software. Under IRS rules, business expenses must be "ordinar...

Business Formation

Law corporation - S Corp v Partnership

Asked Thursday, May 28, 2026 by Elizabeth

Hi, I am considering opening up a law practice with another attorney in California. We will be partners owning the practice and are debating which is a better option, a S-Corp or partnership. What are the tax advantages of either? Is one better over the other? Also, my law partner is a partner in another practice. Does that impact my practice that we open together at all? How? Thanks.

Quick Answer:

In California, licensed professionals like attorneys generally cannot form a standard LLC; they must typically use a Professional Corporation (PC) or a Registered Limited Liability Partnership (LLP)....

Business Formation

IRS

Asked Monday, May 25, 2026 by ASAD

How much it would cost me for form 5472 and forma pro 1120, And also need guidance regarding bookkeeping, do you offer such type of service/software or not

Quick Answer:

For a foreign-owned U.S. single-member LLC, tax preparation fees typically range from **$500 to $1,500 per year**, depending on the complexity of the "pro forma" Form 1120 and Form 5472. Costs vary ba...

Business Formation

Retention FIRPTA Non US

Asked Friday, May 01, 2026 by joao

Hello, how are you? I hope you're well. I'm opening a single-member LLC in Florida. I live in Brazil and I'm Brazilian. Because I'm the sole owner of the LLC and I'm a foreigner, am I required to withhold 15% FIRPTA on land purchase and sale transactions? If so, how can I avoid this withholding?

Quick Answer:

For a single-member LLC owned by a non-resident alien, the LLC is generally treated as a foreign person for U.S. federal income tax purposes, including FIRPTA.

Business Formation

Business Manager

Asked Wednesday, September 24, 2025 by JD

Would it make more sense (and be easier) to convert from an S Corp to an LLC or dissolve the business and start new as an LLC. The business has not made much profit in the past few years.

CPA Answer:

If your S Corporation hasn’t been profitable in recent years, simplifying your structure may make sense. Whether to convert or dissolve depends on your goals and state rules.

If the entity is clean and you want continuity (same EIN, bank accounts, and contracts), a legal conversion from S Corp to LLC is typically the smoother route. However, if the business has old liabilities, inactive operations, or you want a fresh start, dissolving the S Corp and forming a new LLC can be more practical.

Either option should be reviewed with your CPA and legal advisor to ensure compliance with both state filing requirements and IRS entity classification rules.

Answer Provided by: Nyquaise Moteng Nyquaise Moteng