LLC for wife\'s job

[jfoxcpacfp]

coug16 wrote:

My wife stays at home with our daughter but also is a free lance writer for 3 different companies. She is paid as a 1099 and makes roughly the same as I do as an intern ~50k. We live in Florida. I’m trying to figure out the ins and out of LLC and whether or not we would benefit from setting one up for her work. This allows us to write off several expenses each year correct? Any advice or good resources to guide me through this? We are just trying to minimize our tax burden and lower our AGI to continue receiving the 50% subsidy from repaye throughout residency.

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The reason to set up an LLC is for liability protection. As @Zaphod said, you get all of the same write-offs (don't forget the home office deduction!) either way. Suggest she go ahead and set up a SOLO-k with a bit of the profits and hire you for admin work when you get out of residency. Then you will be able to r/o your 401k/403b.

Best resource w/b a good CPA. Highly recommended when you run a business.

[Zaphod]

If the costs are low in florida it might be worth it, but theres not really any benefit you cant also get as a sole proprietor. An independent contractor has all the same options for write offs, they just dont have the distribution ability, though at that income level it doesnt really matter.

[coug16]

My wife stays at home with our daughter but also is a free lance writer for 3 different companies. She is paid as a 1099 and makes roughly the same as I do as an intern ~50k. We live in Florida. I'm trying to figure out the ins and out of LLC and whether or not we would benefit from setting one up for her work. This allows us to write off several expenses each year correct? Any advice or good resources to guide me through this? We are just trying to minimize our tax burden and lower our AGI to continue receiving the 50% subsidy from repaye throughout residency.