Before MFI Works:
Many emerging entrepreneurs decide to set up their business entities and financial systems themselves. They are encouraged to do so by the “Do-It-Yourself” advertising of companies like Legal Zoom, QuickBooks, TurboTax, and others. While these programs provide great software, they do not provide people with advice. Without legal advice to follow, many people incorrectly set up with business and financial systems. Edward H. is an entrepreneur who came to us for tax advice.
His Tax Problem:
Edward set up his business entity as an LLC and filed through TurboTax, thinking it would save him money on taxes. LLCs with a sole member are disregarded for tax reasons and still filed as part of the owner’s personal return. For sole member LLC to get tax savings, it has to be treated as an S Corp, and there are many rules you must follow.
MFI Works Solution:
Edward came to MFI Works at the end of the year for entrepreneur tax advice. We were able to make some adjustments, saving him $10,000! His TurboTax business tax software cost around $200, but in reality, Edward was paying an extra $10,200 each year. Good thing he came to MFI Works for help!
