Do I need to get an EIN (Employer ID Number) when I'm the only member of LLC? One of the most important reasons that a business owner decides to establish LLC (Limited Liability Company) with only one member in the business is that they want to protect their personal assets from any loss that the business may cause. Limited Liability Company is relatively easy to set up, but the tax payment is not as clear because there is no separate tax classification for LLC. The business owner of LLC should decide which tax classification they are going to file on: sole ...

Tax Deductions A tax deduction (tax write-off) is an expense that a business owner is entitled to subtract from their gross income, resulting in lowering their taxable income (the amount on which they are taxed on.) There are three types of deductions in tax return: personal, business and investment deductions. Business deductions are based on expenses that are spent to run the business. The IRS taxes on profit, not on gross income. The key point here is that the more you deduct, the lower your profit (taxable income) will be. The important rule here is all deductions should be done ...