Many self-employed workers have set up an LLC (Limited Liability Company) to deflect exposure to debt while creating easier tax and accounting practices. Another benefit is easy access to government money that will not have to be paid back provided you continue your payroll.
Benefits of Paycheck Protection Program (PPP) for LLCs:
- Loans that are 2.5 times their monthly payroll costs
- Loans do not have to be repaid if you use at least 60% of it for payroll
- Ideal for companies who have some work coming in but the ability to replace lost revenue sources
- Great for paying sub-contractors to bridge the gap
- Health insurance costs are in the calculation of the PPP loan
- Use a portion to cover rent and utility bills
For example, if...