Set up LLC now or later
February 27, 2012 10:37 AM Subscribe
Asking business question about setting up LLC and tax savings
posted by akomom to Work & Money (5 answers total)
I am asking for a friend. He will pay for a tax consultant but since it's a simple question, maybe the hive mind can give some generous advice here.
My friend wants to set up a LLC to form a company that create web related products. In the first year, there is no anticipated profit. But there will be $3,000 - $4000 spending on set up and maintain the web site, travel oversees to hire people and form business partners. So is it worth to start LLC now and save tax on those expenses or wait to start LLC later after the partnership is all set and things are more ready for actually running the business? Since this is something he does on top of having a full time job and family work, time, resource, and money are all limited. See, just to hire and meet with a tax consultant takes a lot of resources. That's why he wants to ask here. Thanks a lot! By the way, location is California.