Filing Taxes with my LLC

5 Replies

Hi BP,

Help!!! My tax person is saying I need to file for an extension. We have an LLC and I'm under the impression you file with your 1040 and have until 4/15/15.

Does an LLC have to select an S or C Corp when filing a SS-4 Form? My tax person is asking what selection did I choose when applying for our EIN number. I informed him I have an LLC, not a corporation. The EIN number was filed online. (I hired an online copy recommended thru BP to file my LLC & EIN papers).

I should file my LLC along with my 1040. Am I correct? (My LLC members are myself and my husband). We can file our LLC on an Schedule C along with one of our 1040s, if we decide to file separate?

My question is does an LLC have to file as an S or C, if they are not a Corporation? We formed our LLC using Articles of Organization, not as a corporation.

Thank you in advance for your responses.

Dana N.

Dana N., NicholandSons Real Estate, LLC

A single member LLC - everything passes to you.

Joint LLC - partnership rules.

Was your EIN filed as a single member LLC or a partnership LLC?

If filed single, but acting as joint, you need your CPA to file the correction paperwork and get a new EIN from the IRS to portray how your LLC is acting.

No you do not have to chose to be taxed as a corporation. As @Jonathan Plant said - by default - you are a disregarded entity if it is single member and taxed as a partnership if it has more than one member. You CAN elect to be taxed as a corporation if you feel it is to your benefit. 

What I just said is very basic. The fact your accountant didn't explain is would make me want to choose another accountant.

Since you started by saying "We" I presume this is a multi-member LLC. A partnership return should be filed and each member gets issued a K-1 form. The information on the K-1 goes on to your personal return.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

Originally posted by @Jonathan Plant :

A single member LLC - everything passes to you.

Joint LLC - partnership rules.

Was your EIN filed as a single member LLC or a partnership LLC?

If filed single, but acting as joint, you need your CPA to file the correction paperwork and get a new EIN from the IRS to portray how your LLC is acting.

 Hi Jonathan, I filed single, the first year tax return on Schedule C, after that acting as joint, Tax return on Form 1165, but I have kept using the same EIN, is there any problem?

Hi Gary,

If your current EIN was filed under "Single-Member or disregarded entity" and you are "acting" like a partnership, you need to file a "Corrected EIN" form with the IRS. My CPA had to do this for me because I did the opposite. I filed for an EIN on my own as a partnership LLC, because this was my original intent, but ended up operating as a "Single-Member" LLC for the tax year. She filed for my corrected EIN as soon as it was caught the summer before filing. It takes a while for the IRS to correct the EIN and send you your new EIN number in the mail. I suggest filing for an extension to have this corrected so that you can file properly and avoid being audited.

If you file using the Partnership LLC Schedule K-1 IRS Form 1065, you and your partner should show your pro-rata income, credits and deduction here.

Check with your state requirements through a CPA just to verify what I said was correct.  I am not a CPA or a tax professional but have learned a thing or two over the years.  It is not wrong to meet up with a different qualified business CPA also, that is familiar with RE Investing, just to inquire.

Good luck and I hope this helps with your next step.

Jon

Take a look at this link: http://www.irs.gov/Businesses/Small-Businesses-&-S...

Seems to be saying you can file schedule C, E or F, whatever is appropriate. And if owned by husband and wife in a community property state the LLC can be considered a disregarded entity.