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Originally Posted by Freddy
Not so much for liability coverage. That's why I carry NASO membership. Though that might be a secondary consideration, if practical.
I'm wondering about it for tax purposes. Have any of you pursued incorporation for any discernable tax advantage?
Word around here is that, especially with the advent of more and more schools choosing RefPay, auditing by the IRS may become more of an issue for more officials. And if income/expenses are claimed, the thought of inexpensively forming an LLC occurred to me as an option for some.
Any insights from anyone out there?
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If you're claiming all of your income as you should, the use of RefPay shouldn't change your tax liability or risk of audit. If, on the other hand, you're cheating on your taxes by not claiming all your officiating income, perhaps you should get audited.
In any case, the use of an LLC isn't going to reduce your income or increase what you can legally deduct....and it will probably cost you money to establish. It could allow you to insulate your personal assets in the event of a liability claim that exceeds your insurance coverage.