One of these exemptions may allow you to withdraw IRA money without penalty. There are eight ways to avoid the 10% early withdrawal penalty fee that is assessed by the IRS on IRAs tapped before the beneficiary turns 59.5 years old. Jetta Productions/ Iconica/ Getty Images.
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1 Limited liability company (LLC). 2  Another business type that is formed under state law and gives you personal liability protection is the LLC. 3  Tax-wise, an LLC is similar to an S corporation (or S corp), with business income and expenses reported on your personal tax return. Another business type that is formed under state law and gives you personal liability protection is the LLC. 2  Tax-wise, an LLC is similar to an S corporation (or S corp), with business income and expenses reported on your personal tax return. 3  If you are the only owner of an LLC, you are viewed as a âdisregardedâ entity.