Incorporate?

[Freddy]

Have any of you incorporated for purposes of claiming income and legitimate expenses as an official?

[Indianaref]

Originally Posted by Freddy

Have any of you incorporated for purposes of claiming income and legitimate expenses as an official?

No. Interesting, do this to limit your liability?

[Freddy]

Originally Posted by Indianaref

No. Interesting, do this to limit your liability?

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?

[just another ref]

What is the advantage?

[Camron Rust]

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?

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.

[BktBallRef]

Originally Posted by Freddy

Have any of you incorporated for purposes of claiming income and legitimate expenses as an official?

I file a Schedule C, claim my income and offset it with legitimate expenses.

[Welpe]

Originally Posted by BktBallRef

I file a Schedule C, claim my income and offset it with legitimate expenses.

This. Unless you're worried about liability, I see no need to incorporate.

[Adam]

Originally Posted by Welpe

This. Unless you're worried about liability, I see no need to incorporate.

There may be tax benefits, if you're otherwise self employed, but officiating income isn't generally enough to see them in amounts that offset the set up costs. A friend of mine (not an official) who is self employed does it so he can consider himself an employee of his LLC and get deductions for his health insurance.

Talk to an attorney, though, rather than a bunch of know-it-all dopes on the internet.

[deecee]

Originally Posted by Adam

Talk to an attorney, though, rather than a bunch of know-it-all dopes on the internet.

These days it's the dopes that run things. And no I didn't stay at a Best Western Inn Express last night.

[BillyMac]

Fa la la la la, la la la la.

[Kelvin green]

As an attorney ( although probably not licensed in your jurisdiction) and not providing any specific legal advice to your situation ( my disclaimer)

Incorporation for officiating make little sense.

1) to have the legal liabilities of a corp, you would need to follow all the formalities like maintaining corporate books, etc

2) most states have corporate franchise taxes. California can be as much as $800 per year.

3) unless it is an S corp the is double taxation

4) there is the issue with separate EINs with IRS ...

5) the corporation would need to get the liability coverage not the individual

6) the corp would have to figure out how to referee in the name is the corp and have contracts listed as the corp

LLC may run into some of the same issues because it is a separate entity from the official. Not saying it can't be done but probably is costly with so few limited advantages...

[BillyMac]

Originally Posted by Freddy

Have any of you incorporated for purposes of claiming income and legitimate expenses as an official?

[Stat-Man]

I have a One-person LLC for my sports activities and file a schedule C at year-end. That way I have limited liability with the ability to file as a sole proprietor.

(Standard disclaimer: What works for me may not be best for someone else.)