USA Starting LLC for Military Member

[Cory Cox]

Thank you in advance for anyone who can help me on this.


I am a jack of all trades, everything from lifting the roof off my house, fully remodeling it. Building websites, designing software programs, SharePoint admin, and even drop the engine from your car. Most of this experience comes from helping friends for free to gain experience on another person's dime.


I realized all this free effort helping people I should be able to recoup some of it. My thought is to start an LLC called Cory Cox Solutions (CCS). With this LLC I would like to claim property management on my rental property, website design for helping small startups who cannot afford professional designers and most important, I would like to claim all the free hours I give to the military as a reservist. This military time comes from being "upper management" and the military only allots for so many days per year for reserves to get paid, but that does not come close to the time required to keep 20 military members lives in order. In the last 3 months I have claimed 120 hours unpaid for the Navy building a military management software now adopted by 18 commands nationally.


Can I create a Non Profit LLC for all this related to filing taxes?

 

[Drmdcpa]

You cannot deduct sweat equity even if it is nonpaid or unfilled hours for an employer or client.

You cannot also deduct sweat equity for your rental properties, home, your neighbors car or website.

What you can deduct is actual out of pocket expenses.

Whether you should create an LLC is not the same as if you can create an LLC. Chances are you can. Chances are you should not unless you are regularly in the business of getting paid for services rendered. Paying yourself a management fee to manage your rentals might make sense under limited circumstances but generally it does not.

As for a Nonprofit LLC, I have never heard of such a thing. There are nonprofit corporations and foundations but not for the purposes you described.

 

[Cory Cox]

You cannot deduct sweat equity even if it is nonpaid or unfilled hours for an employer or client.

You cannot also deduct sweat equity for your rental properties, home, your neighbors car or website.

What you can deduct is actual out of pocket expenses.

Whether you should create an LLC is not the same as if you can create an LLC. Chances are you can. Chances are you should not unless you are regularly in the business of getting paid for services rendered. Paying yourself a management fee to manage your rentals might make sense under limited circumstances but generally it does not.

As for a Nonprofit LLC, I have never heard of such a thing. There are nonprofit corporations and foundations but not for the purposes you described.

What about the time spent working for the military unpaid?

 

[Drmdcpa]

You copied my post but apparently did not read the first statement. At least your question indicates you did not.

 

[Cory Cox]

You copied my post but apparently did not read the first statement. At least your question indicates you did not.

I seen your first comment, just did not associate it with the military part. So essentially an employer can make a person work and not pay them? I cannot use an llc to recoup some of the loss?

 

[Drmdcpa]

If you are not satisfied with working for "uncompensated" time, do not.

The military is an employer almost like every other employer.

Sweat equity is not a deductible expense under any circumstances.

 

[Cory Cox]

I appreciate your help, but I cannot simply say no to the military even if it's reserves. Thank you for your time.