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How do I avoid paying taxes on my LLC?

A general Corporation making a Subchapter S Election or an LLC with or without a Subchapter S Election pays no federal tax on its taxable income and no employment taxes on its distributions to stockholders.

How much is a NC LLC?

Cost to Set Up an LLC in NC The cost to file a domestic LLC in North Carolina is $125. The cost to file a foreign entity is $250. In addition to filing fees, LLCs must also file an annual report with the Secretary of State, which costs $202 ($200 for paper filings).

What are the benefits of a LLC in NC?

Benefits of starting a North Carolina LLC: Protect your personal assets from your business liability and debts. Easy to create, manage, administer and remain compliant. Potential tax treatment advantages and easy filing. Low filing fee ($125)

Should I classify my LLC as a corporation?

The best tax classification for an LLC depends on whether you want your business profits to be taxed at your personal income tax rate, or at the corporate tax rate. If youd prefer personal tax rates, you can classify it as a disregarded entity or as a partnership. Otherwise, you can classify it as a corporation.

What is the downside to an LLC?

Disadvantages of creating an LLC States charge an initial formation fee. Many states also impose ongoing fees, such as annual report and/or franchise tax fees. Check with your Secretary of States office. Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.

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