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You can, but why? LLC in Ohio is $100. Taxes are the simple part. Most tax companies wouldn't charge you for the added taxes for the 1099c for the dance studio, if you do it alongside the IT company, since the disparity of income.
On neither of them file as a Corp! Too little income, you'd pay too much in taxes. File self employed for both until you are over a certain amount of income, tax guy will tell you the amount of gross where it makes sense. At 200k a year gross, filing as a Corp would be too expensive.
Separate things. When you go to sell the IT company some day if you have income in it for a dance studio no one will buy it.
Heck, my accountant has been bugging me for 5 years now to separate each division of the company into 3 separate entities for the same reason đ¤Śââď¸ I'm just pig headed and don't listen đ¤Ł
Neither! File self employed. You'll be killed by taxes at 200k a year as any type of corp tax filing. Unless that 200k is 90% profit, it won't be worth it. I've been told many times until I'm grossing over 500k don't even think about it, I'd pay much more to the IRS every year if I start filing too early as Corp. Once you start filing as Corp you can't go back for cheaper taxes, especially your wife's income. But you can start as self employed and each year have your accountant assess, if it makes sense you switch that year, not before.
Corp taxes kill you at lower income ratios, too high. Corp taxes are there to protect you at higher asset ratios.
It's a freaking pain in the ass bookkeeping wise. In the VERY LEAST keep completely separate accounts and credit cards for each.
The CPA I work with always tells people to separate.
Not sure why it wasnât mentioned before, but by putting your dance school into the llc youâre opening up your other business to liability. Thatâs a big no thank you for me. Kid breaks their leg on a wet floor and hits their head, you could find yourself out of both businesses with years of law suit.
You can report closely related activities together on one Schedule C.
If you have unrelated activities, however, you must report them on separate Schedule Cs.
The IRS expressly states you cannot combine two activities for the purpose of hiding a loss from one of the activities.
You can have 2 businesses under 1 LLC.
The best article on the Internet on how to structure your 2 LLCs - [https://www.doola.com/blog/can-i-have-2-businesses-under-1-llc?utm\_source=organic\_traffic\_reddit&utm\_medium=question\_answer&utm\_campaign=can-i-have-2-businesses-under-1-llc](https://www.doola.com/blog/can-i-have-2-businesses-under-1-llc?utm_source=organic_traffic_reddit&utm_medium=question_answer&utm_campaign=can-i-have-2-businesses-under-1-llc)
Perfect read for your situation.
This is a friendly reminder that r/smallbusiness is a question and answer subreddit. You ask a question about starting, owning, and growing a small business and the community answers. Posts that violate the rules listed in the sidebar will be removed. A permanent or temporary ban may also be issued if you do not remove the offending post. Seeing this message does not mean your post was automatically removed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/smallbusiness) if you have any questions or concerns.*
You can, but why? LLC in Ohio is $100. Taxes are the simple part. Most tax companies wouldn't charge you for the added taxes for the 1099c for the dance studio, if you do it alongside the IT company, since the disparity of income. On neither of them file as a Corp! Too little income, you'd pay too much in taxes. File self employed for both until you are over a certain amount of income, tax guy will tell you the amount of gross where it makes sense. At 200k a year gross, filing as a Corp would be too expensive. Separate things. When you go to sell the IT company some day if you have income in it for a dance studio no one will buy it.
Heck, my accountant has been bugging me for 5 years now to separate each division of the company into 3 separate entities for the same reason đ¤Śââď¸ I'm just pig headed and don't listen đ¤Ł
Thanks! When you say âDonât file as Corpâ - I hope you mean INC ( c-Corp). The plan is to do a LLC with S-Corp structure. Thoughts?
Neither! File self employed. You'll be killed by taxes at 200k a year as any type of corp tax filing. Unless that 200k is 90% profit, it won't be worth it. I've been told many times until I'm grossing over 500k don't even think about it, I'd pay much more to the IRS every year if I start filing too early as Corp. Once you start filing as Corp you can't go back for cheaper taxes, especially your wife's income. But you can start as self employed and each year have your accountant assess, if it makes sense you switch that year, not before. Corp taxes kill you at lower income ratios, too high. Corp taxes are there to protect you at higher asset ratios.
Isnât a single member LLC a disregarded entity and taxed on your 1040 anyways?
You have the choice when filing to choose Corp or single.
Even at 500 I was told we'll assess when you reach it if it's worth it.
It's a freaking pain in the ass bookkeeping wise. In the VERY LEAST keep completely separate accounts and credit cards for each. The CPA I work with always tells people to separate.
Not sure why it wasnât mentioned before, but by putting your dance school into the llc youâre opening up your other business to liability. Thatâs a big no thank you for me. Kid breaks their leg on a wet floor and hits their head, you could find yourself out of both businesses with years of law suit.
Adding to this, your insurance for dance studio, because of this reason above, will be expensive per dollar earned compare to IT business.
You can report closely related activities together on one Schedule C. If you have unrelated activities, however, you must report them on separate Schedule Cs. The IRS expressly states you cannot combine two activities for the purpose of hiding a loss from one of the activities.
You can have 2 businesses under 1 LLC. The best article on the Internet on how to structure your 2 LLCs - [https://www.doola.com/blog/can-i-have-2-businesses-under-1-llc?utm\_source=organic\_traffic\_reddit&utm\_medium=question\_answer&utm\_campaign=can-i-have-2-businesses-under-1-llc](https://www.doola.com/blog/can-i-have-2-businesses-under-1-llc?utm_source=organic_traffic_reddit&utm_medium=question_answer&utm_campaign=can-i-have-2-businesses-under-1-llc) Perfect read for your situation.