Pros and Cons of Mining Through a Limited Company

Is it worth it to set up a limited company for mining instead of just doing it personally?

Depends on where you live. In the US, it's usually a good idea because you can benefit from huge deductions on hardware costs thanks to section 179 of the tax code.

Stop shilling links everywhere. Just create your own thread for that. OP, if you have a lot of rigs, running a company can help since you can hire people to manage the mining. But yeah, tax benefits are likely the biggest draw.

Thanks for the info! Would it help with financing too? Like, could you get a loan using the miners as collateral?

Most people will say getting a loan for miners is risky. Mining's unpredictable, and if things go south, you don’t want a loan looming over you. But if you already have miners making steady income, maybe your bank would consider that for a business loan.

If you're in the US, definitely talk to a tax attorney. Find someone who knows crypto well. They can help you figure out what expenses you can deduct and keep you safe from audits.

We started mining personally but soon formed an LLC. A couple of things to think about: 1. Section 179 deduction is a big deal, seriously. 2. Miner insurance is a must. Business liability is hard to find, but property coverage is key. What if your gear gets stolen?

Really appreciate the tips! Super helpful! How do you show revenue for accounting and turn it into fiat to cover your operational costs?