I recently got my professional license and am planning to go for the license above mine to increase the amount of work I am able to do as a professional. There is a lot of training involved to get the next license, which means a lot of investing money ($10k+). From what information I’ve gathered so far, I would be able to offset the cost of that training as business start up tax deductions, at least for the first year. I know I wouldn’t be able to put everything I’ve invested to get my current license down as a deduction, but I’m meaning most everything else to get to the next license.
I am planning to register as a PLLC and do intend to actually start a profit-building business once I get the next license. Or rather, I plan to transition this business into that once I reach that milestone. Also, if I end up doing contract work in the mean time, I like the idea of being able to do it under a business name rather than my own name. Though, I doubt I would for the time being as I am working under a regular company as a regular employee and plan to stay with them until I get the next license.
I guess I’m mainly wanting confirmation that this is a good move (or not) before I go ahead with the idea or if I should just wait until I plan to actually make a profit off of the business to make it.
There’s two reasons to form an LLC - 1) personal asset protection 2) tax savings from electing to be taxed as an s or c-corp.
If you’re doing this just to build writeoffs, you don’t need to go LLC, just work with a CPA who does small business work full-time (NOT H&R block, a real CPA) and they’ll tell you what you need for both state and federal.