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Can I save money on taxes by becoming an LLC?

My CPA friend said I should get an LLC to lower my taxes I will be taxed on for getting paid by Rover. Is this correct and can I do this?

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I contacted costumer support asking about taxes and was told: "The one things I can confirm is that should you choose to offer your services as an LLC, you would still be able to list your services through Rover, provided you're abiding by all local laws, and taking care to avoid violations of our"

Christina J.

about the LLC, the business does need to be completely separate from your business through Rover, and as per our Terms of Service, you cannot list your business on your profile in the interest of having clients move from booking through Rover to directly to your business.

Christina J.

So, if you have a business that you have outside of Rover an LLC is a good idea. If you are ONLY using Rover, there is no point because your work has to be completely separate from Rover.

Christina J.

Of course, as far as deductions and having extra insurance and such, you should contact an outside tax professional.

Christina J.

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Cari C.

I don't think an LLC is really necessary unless you do quite a volume of business. In that case, a CPA or attorney could help you set one up. If you do a large volume of business, make sure you check with your city/county/state to see what their rules are regarding boarding animals. You may have to get some sort of license.

I've been filing as a sole proprietor for my Rover business and other independent contractor jobs I have for many years. To me, the only benefit of setting up an LLC is to protect your personal income and assets from liability if someone sues you. I've read it's an expensive process and it actually causes a more complex tax filing situation. To me, the Rover insurance covers everything that you might be sued for.

Also, ask for specific details and examples of why your CPA recommends an LLC over sole proprietorship. It may just be a blanket or generic recommendation so he can make more in fees for setting it up for you.

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I think the LLC has to file a return and distribute out all its income, like a partnership, on K-1s, which she would report on Schedule C as a source of income. An extra step and more cost to set it up and then file its return.

Karen R.

Whenever you're providing services like daycares or boarding, an LLC is a great idea to protect you and your personal assets from anyone that decides to sue you. Keep in mind that rover's insurance is secondary and will only take effect once you've exhausted your home insurance.

Arni R.

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Mark F.

Doesn't look like anyone here is an LLC. If I were I would have to pay a tax professional to file my taxes for me. In that case, it would make sense to see one beforehand to learn if I'm a good fit for that.

The two benefits that come to my mind are 1) you can write-off more expenses. And 2) protection from liability.

But, write-offs raise red flags for audits. And, you might need to ask a lawyer how liability works when you advertise on Rover as an individual -- but then invoke corporate protection when someone seeks a judgement against your individual assets. ("Annie in Wilmington, NC" isn't the same as advertising "Annie's Dog Services, LLC.").

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I had my LLC dog walking and pet hotel business. It's not worth the hassle. It's easy to set up, you pay a fee (at least in CO it works that way, you need a separate company for this), but at the end it's not worth it. I dissolved it.

Lenka L.

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Sara P.

My attorney advised me to incorporate as a single owner LLC, to get insurance, and to get an umbrella policy. The cost of all of this is minimal (at least in my state) and offers protection that the "Rover Guarantee" never will.

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Can I save money on taxes by becoming an LLC?

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