Hi June.
I love your site. I will be buying your book from your site.
My questions is this. I setup an LLC to run my business expenses through. I have several ventures: Podcast, Web Design and support, my wife makes mosaics and sell them at Festivals, and we are working on a book.
Do I keep the income and expenses for each of these separate? Or can I track them all together?
Thank you for your support and excellent web site.
Terry
Cedar Park, TX
Hi Terry,
So glad you like my site. Please tell your indie friends and colleagues. They all need simple, clear info.
If it were possible to make all these activities fit into one business then the most tax advantageous structure is to have one of you as the sole proprietor employer and the other as the employee.
If you cannot have your wife's ceramics fit into what you do then you need two sole proprietorships. And then, depending on the subject of the book, one of you would be the employee of the other. Let's say your book were about ceramics and you were helping your wife with the tech part then you would be her employee. This would be done by setting up a payroll with all attendant forms and filings. You might want to read these posts for more info on husband/wife businesses -- husband-wife business .
Sorry, don't know what the heck you mean when you say that you "setup an LLC to run my business expenses through." An LLC is a legal entity not a tax structure. And no business entity is set up to run expenses through. I strongly urge you to read my most recent issue of Ways through the Maze. This month's column is "LLC? Incorporate?" Check it out at Maze archives here.
Best,
June
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