Comment on Why do big corporations get to claim losses, but small businesses can't?
GildorInglorion@lemmy.world 2 months ago
The difference may also be how the business is structured. Personal vs a corporation (LLC or otherwise).
Comment on Why do big corporations get to claim losses, but small businesses can't?
GildorInglorion@lemmy.world 2 months ago
The difference may also be how the business is structured. Personal vs a corporation (LLC or otherwise).
lemmyman@lemmy.world 2 months ago
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.
FireTower@lemmy.world 2 months ago
Yes the main appeal of a LLC is that you aren’t liable if your LLC gets sued. As a sole proprietor if someone slips and falls in your store they can recover damages from you personally. As an LLC they can only get the business’s funds.
This means that even if awarded damages from a civil case tanks your business your won’t be out of a home and your personal bank accounts are safe (not considering the burden of lossing your source of income).