Dear Jason,

I am starting a business and many of my friends suggest that I become an LLC.  Will this save me money in taxes?

Todd

Dear Todd,

Business owners typically select an LLC for the limited liability that it provides.  If you are in an industry where it is likely that you could be sued, then an LLC could be a good option to protect your assets outside of the business.  An LLC does not usually provide tax savings and a single member LLC files the same tax form Schedule C as does a sole proprietor.

Sincerely,

Jason