What is the name of your state? Ohio
For the last two years a business associate and I have done independent computer consulting. We both were paid as independent contractors by our clients and had no formal business ties. We just worked together for the same clients. Recently, we decided to form a LLC and go into business together.
My question is this... Previous to the formation of our LLC I would write off expenses like my cell phone bill, internet access, office supplies, etc. because I used them for my business. These bills and expenses were in my name. Now that we have formed a LLC could I still write these expenses off or would these expenses need to be paid for and written off by the business? For instance... would I have to put the cell phone bill under the business name for it to be a write-off?
Basically, from what I have been reading it sounds like when we formed the LLC my partner and I lost our individuals tax right-offs and anything we write-off going forward will have to be through the business. Someone please help me on this!
For the last two years a business associate and I have done independent computer consulting. We both were paid as independent contractors by our clients and had no formal business ties. We just worked together for the same clients. Recently, we decided to form a LLC and go into business together.
My question is this... Previous to the formation of our LLC I would write off expenses like my cell phone bill, internet access, office supplies, etc. because I used them for my business. These bills and expenses were in my name. Now that we have formed a LLC could I still write these expenses off or would these expenses need to be paid for and written off by the business? For instance... would I have to put the cell phone bill under the business name for it to be a write-off?
Basically, from what I have been reading it sounds like when we formed the LLC my partner and I lost our individuals tax right-offs and anything we write-off going forward will have to be through the business. Someone please help me on this!