USA Net business loss with w2 income


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I'm starting a business, LLC. I expect a loss this year. I have another regular w2 job. Will I be able to reduce my taxable wages from my w2 by the loss of my LLC? I'm only concerned about federal income tax.
 
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Joined
Oct 4, 2022
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Congrats on starting your business!

Assuming the LLC is being treated as “disregarded” for federal income tax purposes, then yes - generally losses from your LLC will offset all other types of income.

I know you specified “federal income tax” but I did just want to throw in that the only thing is that the losses don’t allow you to claim back the FICA taxes on your W-2 income.

Hope that helps!
 

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