3 Ways Forming a Florida LLC Can Help with Taxes

Florida LLC Tax Strategies for Business Owners

While we’ve already touched on how LLCs can reduce self-employment taxes, we’d like to share some more information about the general tax benefits of LLCs as well. Here are three key strategies every LLC Member should know about.

1. Retirement Funds and Life Insurance Policies

You can use your Florida LLC to set up retirement funds and life insurance policies. These funds and policies benefit from higher contribution limits, with the specific cap based upon your LLC’s tax election status. To make things even better, there won’t be any taxes on your LLC’s contributions, either. This further maximizes the money that you can set aside for your retirement and your beneficiaries. You might even be able to draw from your life insurance for extra retirement funds, so be sure to speak to your CPA about your options.  

2. Tax Flexibility

Tax election flexibility is perhaps the biggest advantage of forming a Florida LLC in the first place. There are a lot of misconceptions regarding Florida LLC tax election. For example, an S Corporation isn’t actually a corporation, but an LLC that has instead elected to be taxed as a corporation. Your LLC can also file as a sole proprietorship or a partnership, depending on how many Members are in the company. If you’re unsure which tax election is best for your business, don’t be afraid to reach out to a lawyer or CPA for guidance.

3. Leasing Personal Assets to the Florida LLC

There are also tax advantages to be gained from leasing personal assets to your Florida LLC, such as your car or a home office space. Leasing assets to your LLC allows you to deduct their value as a business expense from your taxes, further increasing the amount of money that you take home. This requires an ironclad lease agreement if you want to avoid the IRS. Consider enlisting a trusted business attorney if you don’t have any experience in that area.

Our firm’s experience with business formation means that you can move into the future with confidence. In many cases, we can get LLCs formed within the same week. For more, visit our consultation page or call (727) 279-5037.

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