Part 107 Pilots

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If you're a certified Part 107 pilot and fly most your flights under that moniker, did you file for a business license in your state? And if so, did you file as an LLC, C or S Corporation? Just wondering how the majority of forum members claim income on their taxes if they actually make money (Drone Base, etc.)... :)
 
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Part 107 and how you setup your business are completely independent of each other. In order to operate any business, follow your local and state regulations. I know of several that are just setup as an independent contractor with no business entity. This all becomes more of a tax question than anything else. I suggest you speak with a CPA in your area.

EDIT: My personal preference is an LLC for tax purposes, but also brings additional local and state filing requirements. But that's just me....I'm not a CPA, nor do I play one on TV.
 

N42742

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An S-Corp has better tax benefits (regarding self-employment tax) than does an LLC. Not much more work to get, either. Down side is that you'll need to do a corporate tax return. With an LLC, you just add in a schedule (K, I think) to your personal tax return.
 

BigAl07

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LLC here (long before Part 107).

We got state and local business licenses.
 
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An S-Corp has better tax benefits (regarding self-employment tax) than does an LLC. Not much more work to get, either. Down side is that you'll need to do a corporate tax return. With an LLC, you just add in a schedule (K, I think) to your personal tax return.

LLC can offer lower taxes for single-member versions as all profit/loss falls to your personal return as you indicate and at your personal tax rate. Then it gives you the flexibility to grow as you need to. An LLC can choose to either file as a single-member with the IRS (profit/loss falls to personal return), or as an S-Corp with a corporate return, your choice....all without all the paperwork associated with an S-Corp. (Stock certificates, meeting minutes, board members, etc) Your status can be changed with the IRS from single-member to S-Corp return when you are expanding to give you better tax benefits. State laws may push someone one way or another, though. States with income tax may or may not view an LLC as a corporate entity and always view them as an individual. Which is why each person should check with a local CPA to pick the best solution for THEM.
 
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