Question about LLC & Taxes?
Ok so i was reading about LLC, Partnerships etc... i am just a little confused dont know everything about it yet. LLCs may elect to be taxed like corporations, and in doing so must pay taxes at the business level on the LLC's income and there is another option called Pass Through: Typically profits/losses are reported on the owners' personal tax return and any tax due is paid by the owners at the individual tax level I don't have a great question to ask im just a little confused as how they are meaning... They say LLC's can be taxable like a corporation... is this the best way to go? then the pass through confuses me as well, if your LLC is a incorporated business and profits and losses are to be taxed why would this go on your personal tax return? I am guessing this is in some way a benefit? Any help would be beneficial just trying to understand certain things to the detail really.
Llc taxes anyone?
The thing I need to know about LLCs is if you had a member on your LLC and they were removed (or replaced by someone else) do you still have to issue them a tax form (schedule k-1) for the time They were a member on your LLC?
Business Tax Question for LLC?
My wife and I are starting a business. My only real concern is how we pay taxes to the state and fed. Do i just keep our sales for the entire year saved on a spreadsheet or something then deduct a certain percentage? How do you determine tax percent? Lets say we make a total of $1,000 a month to equal $12,000 that year how to we figure the tax out and when to pay etc and how we pay? We're an LLC and only the two of us are working.
Sole proprietorship vs. LLC Tax question (NJ)?
If you are talking about taking a sole proprietorship and turning it into a single member LLC, then the taxing of the two are identical. Both are reported on Schedule C of the owner's tax return. If it is a multiple member LLC, then it will be reported on a partnership return (1065) and flow through to the members on a Form K-1. Even in this instance the tax implications would be the same. The income is still subject to income tax as well as self employement taxes. Hope that helps.
Carry forward loss question from LLC?
I owned an LLC that had a huge loss in 2006. The company filed as a sub S corp with the IRS. My question is can I carry forward the loss for all things associated with income for the next few years? I have been told the following: For example, the LLC lost 1m in 2006. Therefore, I will be able to carry that loss forward for all related "new company" gains, along with all personal income taxes paid since all past profits and losses went through my personal accounts as it was an LLC filing as an S corp. If this is true, than should I be taking any federal withholding out of my paychecks as of now? Thanks
Quickbooks - Tax Line Mapping Question - What do I map interest to on a single owner LLC's business checking?
If I understand you correctly, as far as the IRS is concerned, you are a disqualifying entity...meaning, when you do your tax return, you'll file a Schedule C as a sole proprietor, correct? If so, then all interest is your interest. I don't have Quickbooks open in front of me, but basically you want to link it to line 8a of form 1040. There is no difference between interest your LLC makes and interest you make at your normal bank. Yes, Schedule B is the same as line 8a of the 1040. Whatever go to Schedule B flows to either 8A or 8B. Good find! Schedule B is all interest and dividends you earn...and since your LLC is basically you, all of its interest and dividends flow to Sch B too. Hope this helps.