TikTok does NOT know LLCs

Dear TikTok, that’s not how this works.

An LLC doesn’t magically turn business costs into tax deductions.

“LLC” is also not:

-A tax status

-Mutually exclusive with ACTUAL tax statuses such as an S Corporation

-Synonymous with “business” - establishing an LLC doesn’t mean you actually have a business nor does NOT having an LLC mean you DON’T have a business

When creating a business, you make choices about its formation such as who will own it, who is responsible for decision making, etc. You also choose how the business will be STRUCTURED **for legal purposes UNDER STATE LAW.

A Limited Liability Company - LLC - is one structure option.

Alternatives are sole proprietorships, partnerships, and corporations. Different structures result in different legal protections and obligations under applicable state law.

How your business can best be structured for legal purposes is a question for you and your corporate attorney to hash out. This is NOT a one-size-fits all answer like some social media accounts might like you to believe.

But what about those tax deductions? If an LLC ISN’T the way to ensure a tax deduction, what is?

• Actually be running a business

-Keep immaculate books & records

-Understand which business costs are tax deductible*

-Work with a tax advisor who understands small business taxes