they get audited, at least, yearly by law
The IRS doesn’t audit annually, companies hire 3rd party auditors. And it’s not a tax requirement, it’s a public-company requirement.
they get audited, at least, yearly by law
The IRS doesn’t audit annually, companies hire 3rd party auditors. And it’s not a tax requirement, it’s a public-company requirement.
Yes there is a difference, but LLC is a legal concept, not a tax one. The IRS taxes sole proprietors the same whether or not they have an LLC.
Tax entities include sole proprietorship (default), partnerships, s corps, c corps. Any of those can be LLCs, but they don’t have to.
Profitability is just a proxy for whether someone is legitimately running a business, or just trying to save money on their hobby. Businesses can deduct expenses, hobbies cannot.
So if you are running an etsy store or an engineering company and buy a 3d printer to make parts, the cost of that 3d printer is subtracted from revenue for tax purposes. If your “business” is actually a hobby, it’s not legally a business expense and therefore it’s not deductible
(In the USA)
How many times did you reboot it?
This monster hasn’t soldered the headers on.
My mouse is on my dominant side so when I’m surfing porn I’m jerking non-dominant.