I am in the process of finding a new job. I am open to 1099 work but prefer W2.
So I wanted to establish an LLC so that if paid on 1099 it’s thru my LLC.
I am trying to be prepared for 1099 employment situations (hence the LLC) but am hoping for W2.
Is there any concern tax wise if i establish the LLC now (while job hunting) but perhaps end up not using the LLC in the even I am hired as a W2 employee?
Could I just keep the LLC up and running even if it’s not earning or would I need to close it at that point?
I am trying to understand tax wise what to consider?
thanks
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There are no federal income tax issues as a result of organizing an LLC that does not produce revenue or incur expenses.
However, you may find state compliance to be an issue depending on the state and most states require filing an annual report and paying a fee (and at least one charges a rather exorbitant fee).
I am in New Jersey. Any idea how i can find out?
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