Tax help: should I run 1099 income through my search LLC?

by a searcher from University of Virginia

3 years ago

I am currently building out a search effort while doing part-time M&A consulting.  The consuling work occupies###-###-#### hours per week and will be a substantial number on my 2021 tax return.  My goal is for the consulting work to power a self-funded search.  

Currently, I earn 1099 income personally.  But I am considering setting up an LLC to capture the consulting income, so that I can deduct the expenses associated with running the self-funded search. 

I'm wondering what the tax impact of taking the 1099 income on my personal statement versus running it through an LLC would be.  I am also wondering about the implications if I later decided to convert to a traditional (funded) search.

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professional from Walsh College of Accountancy and Business Administration

Lots to unpack here with this question and may need more facts. I recommend a call to discuss how this should be treated. email me at --@----.com and we can set up a date and time to discuss.

3 years ago | like reply | 1 like

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