topic Is it advantageous to create an LLC (S-corp) to save money as MFJ when one person is a realtor and the other a Gov't employee? in Business & farm

Is it advantageous to create an LLC (S-corp) to save money as MFJ when one person is a realtor and the other a Gov't employee?

damon-webb — Sat, 01 Jun 2019 02:22:26 GMT

?I am interested in finding out if forming an LLC (S-corp filing status) is right for my Wife and I. My wife is currently a realtor who is paid usually with a 1099 by other realtors. I work for the goverment and not in the real estate business. would like to know, as taxes are concerned, if it is more advantageos for us to create a co owned LLC with S-Corp filing status and have the LLC be compensated for the work she does (with that income passed to her) then file jointly to save on our over all tax liability.

This a tax planning question. None of the TurboTax member...

ToddL — Sat, 01 Jun 2019 02:22:28 GMT

This a tax planning question. None of the TurboTax members of the AnswerXchange community are permitted to answer it (by law).

There are also legal issues (LLC) which we cannot answer....

SweetieJean — Sat, 01 Jun 2019 02:22:28 GMT

There are also legal issues (LLC) which we cannot answer. Please see a local professional.

Maybe. It is possible it could save you some taxes, but i...

TaxGuyBill — Sat, 01 Jun 2019 02:22:30 GMT

Maybe.

It is possible it could save you some taxes, but it is also possible it could require you to pay more (beside a lot of extra paperwork).

There is no way anybody can advise you of that unless they see your entire financial situation. If you are considering it, you need to go to a face-to-face appointment with a tax professional who can analyze your entire situation.

With the limited amount of information you gave, I suspect it would cost about the same or more to be taxed as a S-corporation, so you would not want to do that. But again, only somebody who can see everything can give you a proper assessment.