Personal Tax Consultation: Should an LLC Be Established to Reduce Taxes After Relocating from California to Las Vegas?
A repair technician with 1099 tax status who moved from California to Las Vegas, after calculating an upcoming tax liability of about $4,500 for next year, consults a local accounting firm about whether to establish an LLC to reduce taxes. The firm recommends establishing it before year-end, charging $800 plus additional fees, but six months earlier another employee had suggested filing taxes the following year instead, charging only $300. The technician earns $120 per day, his wife is unemployed, and he doubts the reasonableness of the advice.
Hello everyone! I need some advice. My wife and I moved from California to Las Vegas this year (March 2018). I work as a maintenance technician on a 1099 basis. Based on my calculations, I expect to owe about $4,500 to the IRS next year. Recently, I visited a local accounting firm, and the gentleman there suggested that I set up an LLC before the end of this year to reduce my tax burden. Is this really a good idea? I mean, I only earn $120 a day. My wife is not working. Also, this accounting firm wants to charge $800 for their services, plus other additional fees. Interestingly, six months ago, I went to the same place but spoke with a different person, and he said, 'Don't worry, come back next year, and we'll file your taxes for $300.'