If I formed an LLC and paid myself as an employee, is it possible to show a loss each year on the business. If the business makes $60 and I have $5k in expenses along with $55k, my salary, then I would have no business income. Is this a benifit of an LLC? I know it shields you from personal property lawsuits, but what effect would this have on paying taxes. Would I actually make more money doing things this way because of showing the loss to the business or not? Does that method actually save $$$ or am I wrong thinking this way? Also, how much $ to set up an LLC? Cost $10 to register as a sole prop., is it the same setting up for an LLC? Anyone care to educate a little?