Quote:
Originally Posted by Humdizzle
you need to define 'legit business'. by your definition someone could create an LLC in MT and sell one pair of socks per year through it. they are conducting legitimate business are they not? so he gets to avoid $300k sales taxon his bugatti.
if thats wrong then how many does he need to sell? 10? 100? 1000? is 499 socks a sham company and 500 a legit company?
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I don't need to, the IRS has rules for that.
A good rule of thumb is, if the LLC is taking in more money from its owner than from revenue, it's probably a scam, though admittedly I think the IRS does allow for that to happen for like 2 years or so. I dunno the specifics, I'm not an IRS lawyer or a tax accountant.