LLC or DBA?

Discussion in 'Homesteading Questions' started by SkizzlePig, May 17, 2006.

  1. SkizzlePig

    SkizzlePig Well-Known Member

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    We're going to be purchasing a significant amount of solar panels to generate 120% of our power requirements. In speaking to the salesguy, he said there are a lot of rebates and such to help offset the cost of solar installation.

    He also said that the feds pay 30% of the solar purchase. They cap the rebate to individuals at $2000, but there is no cap for businesses. He suggested that we chat with a tax guy about getting an LLC set-up and apply for the full rebate. Sounds like a no-brainer.

    Here's the question: How many of you are LLCs? And if are or not, please explain why you've chosen that direction.
     
  2. froggirl

    froggirl Feelin' Froggy

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    Laws vary from state to state but we became and LLC because it limits our personal exposure to lawsuits that may result from our business practices (hopefully that would never be needed). In plumbing one leak can sink your biz. :flame: You'll need to keep your business expenses and your personal expenses strictly seperate, though.
    You have to file every year with the state and pay your fees. Not sure how it would benefit an individual....do you already have a business? If you have a farm and you go with the LLC route I'm not sure if you have to file a schedule C along with your schedule F or just the schedule F....something to talk to your tax guy about.
    --f.g.
     

  3. Linda H

    Linda H Missouri Ozarks

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    I did a little research on LLC's in April. Usually they are treated the same way as a partnership and are reported on Schedule E.
     
  4. froggirl

    froggirl Feelin' Froggy

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    Actually that's only if there's 2 or more owner's or "members" of the LLC...if there is a single person/owner you file a Schedule C and a 1040. That's wht LLC's are so much better than the typical corporate structure....ease of distribution and tax prep.
    I was thinking if Unlikely Farmer has farm income he would file Schedule F instead of C but I'm only a bookkeeper, not a C.PA. so I'm not sure how farms file.
    --f.g.
     
  5. SkizzlePig

    SkizzlePig Well-Known Member

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    It sounds like there's enough benefits either in fed rebates or tax advantages that there's only upside to creating an LLC to operate the farm. Obviously, a CPA would be able to offer more specific information on capital expenditures and depreciation. I'm of the sort that just drops off the taxes and let's the CPA wrestle with the numbers.
     
  6. foxtrapper

    foxtrapper Well-Known Member Supporter

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    I'd suggest further research on this claim of uncapped federal rebate for corporations. It's not the free ride the salesman suggested it was. While it may be uncapped, it's only 10%.
     
  7. Cheryl in SD

    Cheryl in SD Living in the Hills Supporter

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    We did a partnership LLC last year for our business. To get it set up was $600. However it did save us quite a bit at tax time. We did it to limit exposure for our trucking company.