Personal Finance & Money Asked by CuriousLlcOwner on October 17, 2020
I have a single member LLC and currently I have about $100k revenue and $10k expenses, so I am taxed on $90k profit (100% of the profit is left in a business bank account and never paid out to me).
I am interested in starting a second business, one that isn’t as profitable on paper. If I file 2 DBAs to have 2 companies under my LLC, will the income and expenses of both combine? I am looking to basically take the $90k profit of business 1 and apply all of it back into business 2 without having to get taxed on the profit of business 1
Is this possible? If not, what is a recommended way to reduce paying taxes on so much profit?
Since all revenue is passed through the LLC to your personal tax filing, none of the information about your business bank account, or DBAs matter.
Your second venture simply has expenses. The things you spend on may be eligible to be accounted for as expenses.
So you simply go from $100K revenue and $10k expenses to $100K revenue and greater than $10k expenses.
Whether its DBA's + separate business bank accounts, or two LLCs and separate business bank accounts, or none of the above, that just makes it easier to account for if you are ever asked about it.
Answered by CQM on October 17, 2020
Get help from others!
Recent Questions
Recent Answers
© 2024 TransWikia.com. All rights reserved. Sites we Love: PCI Database, UKBizDB, Menu Kuliner, Sharing RPP