Apologies for being off-topic for today's conversation. If you can't answer this question today I understand.
I am a W2 employee of a large corporation. I also am a 1099 with a side-gig group of consultants. My wife is a Sole Proprietor of an in-home music studio. We were also just given a small shaved-ice business to run this summer (for our boys to run).
My question is, how much sense does it make to set up LLCs for my wife's music studio and the shaved ice business instead of keeping them as Sole Proprietor entities? Would it also make sense for me to setup and LLC for my consulting business? The Sole Proprietor is so easy when I complete my taxes using TurboTax. Even the deductions and amortization sections are just simple and clean to figure out. Would making and LLC for the music studio, consulting business and the shaved ice business just overly complicate things? Is there a huge financial incentive for creating and LLC? I've heard it can be a tax break somehow, but am not quite sure if it would be worth it. I can give you some ballpark figures of how much we make in each of these gigs if that would help with your answer.
Thanks in advance for your reply.
