Start an LLC for a Chainlink node business?

Is it a good idea to set up an LLC to run a LINK node?

Attached: Screenshot_20190222-010300.png (2880x1440, 748K)

probably.

How would one go on doing that?

>He thinks a node will make him money

I guess there would be tax benefits to doing it. An LLC can protect your identity as well correct? I'm trying to think of other reasons why this would be a good idea.

register as a business. track your expenses/income.

I'm no LINKlet. First page on Etherscan, so yes. I'll be able to make some money running a node eventually.

No real benefit.
LLCs are treated as disregarded entities by default which means profits go to your individual tax return. no tax savings there.
If you tax it as a c-corp its taxed at the corporate level then distributions are tax at your individual tax bracket, i.e., you get double taxed.
The reason people use LLC is to protect from liability, which is not much benefit running your little linklet node providing weather prices to smart contracts.
There is already going to be limited personal liability, almost no recourse in a decentralized network.

t. tax fag

I'm on first page too, and trust me theres no real benefit here. Only additional fees setting up and maintaining the LLC. You are not gaining anything.

Hmmm I see
So can I just run a link node on my laptop and register myself as a company and track my expenses/incomes?

Lol no.

Ok. Great. Thanks user. This is kinda what I was thinking too since things are decentralized it won't matter much anyway. Good to hear it from a tax fag.

What happens to link as an asset when people start running nodes with it? I mean right now people have been holding for long term capital gains, when it is used to access the network it will officially become a utility token. Does that mean you are technically realizing cap gains if you start using it to run a node, even though you are not selling any?

If you aren't selling it than no. Locking it in a contract won't be different than just moving it from wallet to wallet which isn't taxed.

Assuming you choose payout from your node in the form of link, would that be considered income and need equivalent taxes paid in local currency? Or could it be stored as well until you choose to cash out your link?

No if you run a node and get rewards you will be taxed as ordinary income NOT capital gains.
If you get 50k in rewards a year its not taxed at a capital gains rate, but at the income tax brackets.

Not true at all. Its equivalent to mining.
Sorry but you have no idea what youre talking about.

You would owe taxes on the amount of link x usd value at time you received it

how much link for 1 node

So if that's true then it would make the most sense to take a payout in your local currency, set aside provisions for tax, and use the remaining amount to buy more link.
>If you aren't selling it than no. Locking it in a contract won't be different than just moving it from wallet to wallet which isn't taxed.
This sounds logical. Original stash is locked up and untouched, new income generated by node is taxed ordinarily.

lmao took my idea from the discord, nice one faggot

Only a Delaware Corp can protect your identity.

How much Link for one node?

You can also use LLCs to hide your ownership. I think Wyoming let's you make an LLC without having your personal information be public.

Personally,I grabbed some domains and may start an LLC to run nodes or a node as a service system, but I don't want anything crypto-related associated with my name because I don't want to come home to some guy with a gun who wants my crypto.

I firmly believe that being publicly associated with crypto makes you a target.

Merely having LLCs own all your significant things is not enough, though. Especially since in most states, you have to publicly associate yourself with your LLC.

Read jj Luna's how to be invisible for more.

False

I think even New Mexico LLCs used to be the best but they might be changing then to require public identity so Wyoming is likely the best right now.

If I am getting paid in LINK with LINK node, will that count as income or investment?

But the government has no way to track my node reward if I don't disclose it, right?

>Read jj Luna's how to be invisible for more.
Note that the book is still recommending new Mexico LLCs but the author wrote on his website that he no longer recommends them and now just recommends Wyoming ones

>LINKlet
define linklet

I can't keep up with it all... once upon a time, the information I was reading only named Delaware specifically.

Yes that is correct. You can probably withold like 15-20% of each amount you make to be safe.
Likely have to remit quarterly too.
Would be able to estimate how much to withhold as it becomes clear how much you would be making for the year.

If you want to get all crazy on it you can create a Cooks Island trust that is owned by a Nevis LLC. You are the beneficiary of the trust and the manger of the LLC.
Or you can just create a delaware LLC and use some company to form it for you then be your agent. Your name isnt on public documents.
No one is going to really know you own the node unless you tell them. All that is much unneccesary IMO.

It would count as income.
Yes they have a way of tracking it, its all permanent on the blockchain.
Will they track down your shitty little 50k linklet node? Maybe not.
But not reporting it is fraud and tax evasion. A felony. There is no statute of limitations.
Do whatever you want, but if you got a big stack probably just pay your little cut and sleep well at night. You will be ok.

Linklet has and always will be under 400k link.

When you go to remit how do you explain that this income came from operating a node? What's the minimum information you have to provide to satisfy requirements while not drawing attention? Do you have to provide hashes of node transactions or some shit?

Linklet here. I’m trying to file my taxes through TurboTax, but they want to charge me $80 because of crypto. What’s the easiest way to do this? I’ve never done taxes manually before and don’t want to give a penny to the intuit jews. What should I do?

You don't need to worry about any of that shit if you'r legit.
Push came to shove, they would go what is this income.
You show an excel spreadsheet saying I got this link at this date, this is the USD value, this is the value I came up with.
If they go no, we don't believe you, which they won't you go ok here's my address, and these are the transactions I already showed you.
They will go ok and it will be over in 5 minutes.

Bitcoin.tax has a free plan, if you made over the allowed trade amounts you might have to buy the $20 plan.
It gives you the tax form you need to append to your main 1040 which turbo tax does for you.
If you need more help let me know

nevada and maybe delaware only