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Question
I was told by a business owner that is is more beneficial for me to open an LLC and then work my real estate business under the LLC instead of working 1099. Do you know if that is true? And would you happen to know why?
- Anonymous
Answer
Great question! Working 1099 doesn't apply to just sole proprietors. Any non-corporation will receive a 1099 if at least $600 is earned in a year. For taxes, working as a sole proprietor is not much different than working as an LLC, especially if you are the only owner of the LLC. However, operating as an LLC affords you some legal protections not available to sole proprietors.

Melissa Pedigo

Melissa Pedigo has been a CPA for over 20 years and she is one of the only CPA copywriters in the world. With a vast knowledge of U.S. tax and accounting, she’s able to write about tax and finance topics from a unique perspective...as an industry expert. When she’s not writing or being an accounting nerd, you’ll find her watching and playing tennis, reading, tending to her half-grown garden, and studying foreign languages

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