California corp.

I don't see how a LLC can protect you from any liablility if you are the
sole owner/employee. There is no way to avoid liability for ones own
actions.

Mike
MU-2

"Rob Thomas" wrote in message
...
Agreed. I'm more concerned about liability from my actual business
activities which the LLC helps provide, as well as a big ole general
liability insurance policy.

r.

"Mike Rapoport" wrote in message
hlink.net...

If it is your aircraft and you are the pilot, then there is no liability
protection advantage of having a corporation (or other entity) own the
aircraft.

Mike
MU-2

"Rob Thomas" wrote in message
...
Single entity LLC's (one director, me) are treated *exactly* like sole
proprietorships by the IRS. However, they are still afforded the same
legal
protections as a C-Corporation. It *used* to be that LLC's were
treated
as
partnerships, or the LLC could elect to be treated as a C-Corp for tax
purposes. Those regulations changed a few years ago.

I file a 1040, along with a Schedule C (profit/loss from business)
just
as
any other sole proprietorship would.

Just a side note, all of my income is produced through my LLC, so it's
not
just a holding company for an aircraft. I know some people set them
up
that
way, but just wanted to point out that mine is not setup that way.

r.

"Tony Cox" wrote in message
hlink.net...
"Rob Thomas" wrote in message
...
Absolutely.

The $800 goes directly on Schedule C of my personal tax return.
My
LLC
is
treated as a sole-proprietership by California because I'm the
only
member.
So, I get the legal protection of a C-Corp and the paperwork ease
of
a
sole-proprietership.

r.


How does that work exactly? I'm not familiar with LLC's, except
that from what I remember you can opt to have them treated as
either partnerships or corporations for tax purposes.

I don't understand how you can pass the $800 back to your individual
return unless you're treated as an S-corp for tax purposes.

Mike,

Who said that I wouldn't be liable for my own actions? Of course I am.

It's the same reason to form a C Corporation. If you screw up, the assets
at risk are your business assets not your personal assets. You have the
same "corporate veil" issues.

r.

"Mike Rapoport" wrote in message
link.net...
I don't see how a LLC can protect you from any liablility if you are the
sole owner/employee. There is no way to avoid liability for ones own
actions.

Mike
MU-2

"Rob Thomas" wrote in message
...
Agreed. I'm more concerned about liability from my actual business
activities which the LLC helps provide, as well as a big ole general
liability insurance policy.

r.

"Mike Rapoport" wrote in message
hlink.net...

If it is your aircraft and you are the pilot, then there is no
liability
protection advantage of having a corporation (or other entity) own the
aircraft.

Mike
MU-2

"Rob Thomas" wrote in message
...
Single entity LLC's (one director, me) are treated *exactly* like
sole
proprietorships by the IRS. However, they are still afforded the
same
legal
protections as a C-Corporation. It *used* to be that LLC's were
treated
as
partnerships, or the LLC could elect to be treated as a C-Corp for
tax
purposes. Those regulations changed a few years ago.

I file a 1040, along with a Schedule C (profit/loss from business)
just
as
any other sole proprietorship would.

Just a side note, all of my income is produced through my LLC, so
it's
not
just a holding company for an aircraft. I know some people set them
up
that
way, but just wanted to point out that mine is not setup that way.

r.

"Tony Cox" wrote in message
hlink.net...
"Rob Thomas" wrote in message
...
Absolutely.

The $800 goes directly on Schedule C of my personal tax return.
My
LLC
is
treated as a sole-proprietership by California because I'm the
only
member.
So, I get the legal protection of a C-Corp and the paperwork
ease
of
a
sole-proprietership.

r.


How does that work exactly? I'm not familiar with LLC's, except
that from what I remember you can opt to have them treated as
either partnerships or corporations for tax purposes.

I don't understand how you can pass the $800 back to your
individual
return unless you're treated as an S-corp for tax purposes.

We agree that if you screw up then you are personally liable and your
personal assets are at risk. If you screw up while performing work through
your LLC, then you are still personally liable as your personal assets are
still at risk (as well as those of the LLC). The only time that a legal
entity offers liability and asset protection is when someone else (within
the entity) screws up. If you had an employee performing work for the LLC
and he screwed up (and you had nothing to do with it), he and the LLC would
be liable and your personal assets would be safe. Since you are (I think
from your posts) the only employee, I don't see how an LLC offers any
protection of your personal assets.

Mike
MU-2

"Rob Thomas" wrote in message
...
Mike,

Who said that I wouldn't be liable for my own actions? Of course I am.

It's the same reason to form a C Corporation. If you screw up, the assets
at risk are your business assets not your personal assets. You have the
same "corporate veil" issues.

r.

"Mike Rapoport" wrote in message
link.net...
I don't see how a LLC can protect you from any liablility if you are the
sole owner/employee. There is no way to avoid liability for ones own
actions.

Mike
MU-2

"Rob Thomas" wrote in message
...
Agreed. I'm more concerned about liability from my actual business
activities which the LLC helps provide, as well as a big ole general
liability insurance policy.

r.

"Mike Rapoport" wrote in message
hlink.net...

If it is your aircraft and you are the pilot, then there is no
liability
protection advantage of having a corporation (or other entity) own
the
aircraft.

Mike
MU-2

"Rob Thomas" wrote in message
...
Single entity LLC's (one director, me) are treated *exactly* like
sole
proprietorships by the IRS. However, they are still afforded the
same
legal
protections as a C-Corporation. It *used* to be that LLC's were
treated
as
partnerships, or the LLC could elect to be treated as a C-Corp for
tax
purposes. Those regulations changed a few years ago.

I file a 1040, along with a Schedule C (profit/loss from business)
just
as
any other sole proprietorship would.

Just a side note, all of my income is produced through my LLC, so
it's
not
just a holding company for an aircraft. I know some people set
them
up
that
way, but just wanted to point out that mine is not setup that way.

r.

"Tony Cox" wrote in message
hlink.net...
"Rob Thomas" wrote in message
...
Absolutely.

The $800 goes directly on Schedule C of my personal tax
return.
My
LLC
is
treated as a sole-proprietership by California because I'm the
only
member.
So, I get the legal protection of a C-Corp and the paperwork
ease
of
a
sole-proprietership.

r.


How does that work exactly? I'm not familiar with LLC's, except
that from what I remember you can opt to have them treated as
either partnerships or corporations for tax purposes.

I don't understand how you can pass the $800 back to your
individual
return unless you're treated as an S-corp for tax purposes.

Mike,

You're right. I mispoke.

I absolutely agree that the LLC doesn't provide a whole lot of protection,
especially in the liability area. That's why I carry a ton of general
liability insurance as well as an errors and omissions policy. I'd disagree
about the assumption that you wouldn't be liable if you had an employee
screw up. I think you're still liable in that case as well. I do employ
independent contractors on occasion, but the liability in those cases is
often assigned in the contract with the client.

However, when it comes to debts taken out by the LLC, creditors cannot go
after personal assets to secure those debts. I'm sure you'll disagree with
me on this one.

r.

"Mike Rapoport" wrote in message
link.net...
We agree that if you screw up then you are personally liable and your
personal assets are at risk. If you screw up while performing work
through
your LLC, then you are still personally liable as your personal assets are
still at risk (as well as those of the LLC). The only time that a legal
entity offers liability and asset protection is when someone else (within
the entity) screws up. If you had an employee performing work for the LLC
and he screwed up (and you had nothing to do with it), he and the LLC
would
be liable and your personal assets would be safe. Since you are (I think
from your posts) the only employee, I don't see how an LLC offers any
protection of your personal assets.

Mike
MU-2

"Rob Thomas" wrote in message
...
Mike,

Who said that I wouldn't be liable for my own actions? Of course I am.

It's the same reason to form a C Corporation. If you screw up, the
assets
at risk are your business assets not your personal assets. You have the
same "corporate veil" issues.

r.

"Mike Rapoport" wrote in message
link.net...
I don't see how a LLC can protect you from any liablility if you are
the
sole owner/employee. There is no way to avoid liability for ones own
actions.

Mike
MU-2

"Rob Thomas" wrote in message
...
Agreed. I'm more concerned about liability from my actual business
activities which the LLC helps provide, as well as a big ole general
liability insurance policy.

r.

"Mike Rapoport" wrote in message
hlink.net...

If it is your aircraft and you are the pilot, then there is no
liability
protection advantage of having a corporation (or other entity) own
the
aircraft.

Mike
MU-2

"Rob Thomas" wrote in message
...
Single entity LLC's (one director, me) are treated *exactly*
like
sole
proprietorships by the IRS. However, they are still afforded
the
same
legal
protections as a C-Corporation. It *used* to be that LLC's were
treated
as
partnerships, or the LLC could elect to be treated as a C-Corp
for
tax
purposes. Those regulations changed a few years ago.

I file a 1040, along with a Schedule C (profit/loss from
business)
just
as
any other sole proprietorship would.

Just a side note, all of my income is produced through my LLC,
so
it's
not
just a holding company for an aircraft. I know some people set
them
up
that
way, but just wanted to point out that mine is not setup that
way.

r.

"Tony Cox" wrote in message
hlink.net...
"Rob Thomas" wrote in message
...
Absolutely.

The $800 goes directly on Schedule C of my personal tax
return.
My
LLC
is
treated as a sole-proprietership by California because I'm
the
only
member.
So, I get the legal protection of a C-Corp and the paperwork
ease
of
a
sole-proprietership.

r.


How does that work exactly? I'm not familiar with LLC's,
except
that from what I remember you can opt to have them treated as
either partnerships or corporations for tax purposes.

I don't understand how you can pass the $800 back to your
individual
return unless you're treated as an S-corp for tax purposes.

"Rob Thomas" wrote in message
...
Mike,

You're right. I mispoke.

I absolutely agree that the LLC doesn't provide a whole lot of protection,
especially in the liability area. That's why I carry a ton of general
liability insurance as well as an errors and omissions policy. I'd
disagree
about the assumption that you wouldn't be liable if you had an employee
screw up. I think you're still liable in that case as well. I do employ
independent contractors on occasion, but the liability in those cases is
often assigned in the contract with the client.

However, when it comes to debts taken out by the LLC, creditors cannot go
after personal assets to secure those debts. I'm sure you'll disagree
with
me on this one.



No, you are wrong...I won't disagree...

Mike
MU-2

Dang! And I was batting 1.000!

r.

"Mike Rapoport" wrote in message
link.net...

"Rob Thomas" wrote in message
...
Mike,

You're right. I mispoke.

I absolutely agree that the LLC doesn't provide a whole lot of
protection,
especially in the liability area. That's why I carry a ton of general
liability insurance as well as an errors and omissions policy. I'd
disagree
about the assumption that you wouldn't be liable if you had an employee
screw up. I think you're still liable in that case as well. I do
employ
independent contractors on occasion, but the liability in those cases is
often assigned in the contract with the client.

However, when it comes to debts taken out by the LLC, creditors cannot
go
after personal assets to secure those debts. I'm sure you'll disagree
with
me on this one.



No, you are wrong...I won't disagree...

Mike
MU-2