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Updated over 3 years ago,

User Stats

74
Posts
63
Votes
James Palassis
  • Easley, SC
63
Votes |
74
Posts

Paying my own LLC for lawn care?

James Palassis
  • Easley, SC
Posted

I currently do the lawn care for 6 of my long term rentals. Would there be any tax advantages for me to create an LLC for lawn care and paying said LLC a fair market wage for lawn care?

I was thinking 6 lawns, $50/lawn, 2X per month = $600/mo. 

Or would that just be a wash after writing off the lawn care from the profit of the rentals, but adding profit in the same amount to a different entity?

Another thought, my 17 year old son has always helped. Now he has his own vehicle can can do all of the lawn care by himself. He has a significantly lower AGI than my wife and I, would it benefit us for him to charge me for lawn care?

I'm not looking to evade paying my taxes, just looking for strategies to optimize my spending and profit within the eyes of the IRS.


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