I need help filing my LLC

I need help filing my LLC is a common request!

 

By Jeffrey Brooks, CPA, CFP, MBA for JBrooks Wealth Advisors, PC, a Professional Phoenix CPA and CFP Firm  jeff@jbrookswa.com  602-292-2009  Please consult with your professional tax CPA regarding your specific circumstances!

 

Gayle came into my office and said “I need a Phoenix tax preparer to help me file my LLC”

 

I hear several clients or referrals from clients say “I am here to file my LLC”.

 

What people do not realize is there isn’t a tax return called “LLC” because LLC can be at least 5 different types of returns that result in 5 different taxable income or loss outcomes!

 

I told Gayle the way to think about an LLC is similar to thinking about dessert.  Do you remember those little test questions  for logical reasoning “a bass fish is to a salmon as ice cream is to pie?”

 

So an LLC doesn’t tell us how the taxable income will be taxed.  Just like a dessert doesn’t tell us whether the dessert is ice cream, pie, cake, candy or fruit!

 

But there are default provisions exist for LLCs.

 

For federal tax purposes, an LLC having only one member is taxed in the same manner as an individual, unless the LLC elects to be taxed as a corporation.

 

If the LLC operates a business, the member will include the income on Schedule C (sole proprietorship) or F (and Schedule SE) on his/her return.

 

If the LLC is a real estate rental activity, the member will report the income on Schedule E and attach it to his/her return.

 

For federal tax purposes an LLC consisting of two or more members will be taxed as a partnership, unless the LLC elects to be taxed as a corporation.

 

 

As such, the LLC will file Form 1065 and present each partner with a Schedule K-1 showing each member’s share of the income or loss for the year. Each member will carry the Schedule K-1 income to the proper place on his/her return, including Schedule SE for his/her share of the self-employment income.

 

If the LLC elects to be taxed as a corporation, it will file Form 1120 as a regular corporation, unless it makes an S election, in which case it will file Form 1120S.

 

 

Having a qualified experienced proactive tax CPA help you in most cases reduce your income taxes and reduce IRS audit risk!!

  • I need to warn you that there are time deadlines for electing how your LLC will be taxed.

 

 

Your Phoenix tax CPA MUST run the numbers to see which is your best choice!!

 

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About Jeffrey Brooks

Jeffrey Brooks, CPA, CFP, MBA since 1976 has specialized in helping clients save significant taxes, help businesses increase their cash flow, revenues and profits while increasing their control and satisfaction. Jeff and his accounting firm sincerely cares about the happiness of his clients.

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JBrooks Wealth Advisors, PC.

Certified Public Accountant
Address: 4647 N 32nd Street, Suite B245
Phoenix, Arizona 85018
Phone: 602-292-2009
Email: jeff@jbrookswa.com