<prompt> Human: I have seen a few people do this. They create an LLC and then write off a bunch of their expenses to it. I have seen an entire house that is owned by the LLC and the people living part rent to it. I have also seen people write off part of their house like a room to expenses for the LLC. Also seen people write of the cars and has expensesAre the best practices that can be read up on this? Any suggestions?  <response>: An LLC has nothing to do with taxation. Its a state created legal entity to protect against liability. The IRS will tax an LLC as either an S-corp or sole proprietorship. Your examples are either illegal or you dont understand what is actually happening on the tax side. 