Kiritsis & Associates


3 Tax Benefits of LLCs vs Sole Proprietorship. . -- Kiritsis Law Firm Group 212 922 0005

Apr 27, 2021

The tax pitfalls of Sole Proprietorships become more visible, when looking at ways that they can be mitigated by choosing to carry the business operations, as an LLC.

1. Better able to claim business expenses. Often time, the line between personal expenses which cannot be deducted vs a business expense that can be deducted for tax purposes, can be pretty gray.  Forming an LLC could help bolster a taxpayer's assertion, that the expense in question, is indeed a business expenses.

2. Better able to avoid hobby losses. The IRS may argue under certain substance over form type of guidelines, that a business loss should be disregarded as an offset type of deduction, because your activities resulting in that loss were a habit. 

3. Better able to claim 20% income deduction. Recently, Congress passed a tax law, as part of the sweeping Tax Cut and Jobs Act (TCJA) in 2017, allowed for certain businesses meeting certain criteria, to deduct up to 20% of that business' income. Forming an LLC, could go a long way for business owners, to properly claim their 20% income deduction.


Law Offices of Kiritsis & Associates 

Phone # 212 922 0005

Manhattan Office (Main Office):

633 Third Avenue

New York, NY 10017

Suite 1306

Brooklyn Office (By Appointment Only):

1023 74th Street

Brooklyn, NY 11228

1st Floor

New Jersey Office:

7309 Ventnor Avenue

Ventnor, NJ 08406

2nd Floor



We hope you would find this website useful with regards to finding potentially relevant information for your legal issue.   The Law Offices of Kiritsis & Associates PLLC is a boutique law Firm Group headquartered in Midtown Manhattan, with offices in Manhattan, Brooklyn (NY) and New Jersey.  We strive to provide professional legal services for individuals and various business entities.  Our clientele ranges from including aspiring entrepreneurs, startups to established business organizations.

We offer flat fee prices for many of the practice areas provided listed throughout our website.  For more information on the topic you may be interested, or simply to find out how our law Firm Group can help, you may click at any of our site's links.


We are available for existing and potentially new clients 7 days a week -- via online, phone and/or in person. 

Phone# 212-922-0005

Intellectual Property Disclaimer(s):

Copyright 2021

The materials available through this website and any other websites owned by John Kiritsis (individually and collectively, the "Website") are the property of John Kiritsis and his entities, and are protected by copyright, trademark and other intellectual property laws.  You may not use, reproduce, download, store, post, broadcast, transmit, modify, sell or make available to the public content from the Website without the prior written approval of John Kiritsis.  Be aware that any unauthorized use of John Kiritsis trademarks and copyrighted content for commercial purposes in violation of John Kiritsis's intellectual property rights will be vigorously enforced.  All other trademarks, service marks and trade names referenced in this site are the property of John Kiritsis.

Website Created & Hosted with Website Builder