First Tax Filing for LLC - DIY?

Question

Hi all. I would like to know if I can file my LLC business tax return myself? Here are my details, which to me seem as simple as possible so wondering what my options are.

Set up LLC in Jan 11, 2018 - WA is home address with 2 homes in TN.
Purchased 2 homes (cash) -- June
Set up bank account for LLC
1 home rented, 1 vacant
Transferred titles for 2 homes into LLC (Sept)
** LLC has 2 operators, myself and my wife, no additional employees
** To date I have not set up any actual transactions. Aka all rent is coming into my personal account.

I am a noob here but after 2 estimates cost to file is around $1500-$1700. Because I don't have many properties this feels very expensive and eats into my cash flow. Anyway I can do this myself OR is this something too complex for a non-expert?

Daniel Hyman · Answer

@Kristoffer Bergen

You received some great advice from @Eamonn McElroy.

I agree. Based on the info provided, those tax prep quotes sound high.

Eamonn McElroy · Answer

@Kristoffer Bergen

I'm assuming the only members of the LLC are you and/or your wife.  If so you should be able to avoid a partnership return and file on Schedule E of your 1040, assuming the rental doesn't provide substantial services, as WA is a community property state.

"Hi all. I would like to know if I can file my LLC business tax return myself?"

To answer your question, I'd pose a question to you: are you aware that you have exposure to TN's Franchise & Excise tax due to the rental activity in TN during 2018?

If you did not know this, you may be in "hire a professional" territory.  You don't know what you don't know...

Generally speaking there are exemption's from the TN F&E tax for rental activities of small, family held businesses, but it is dependent on fact and circumstances of the taxpayer.  And an exemption still requires filing with the TN DOR.

"I am a noob here but after 2 estimates cost to file is around $1500-$1700. Because I don't have many properties this feels very expensive and eats into my cash flow."

I don't know your whole financial picture, but this seems high based on what you've laid out....  I would get second and third opinions.

There are plenty of tax CPAs / EAs on this board who can work remotely with clients, myself included.

General advice is to read the forum, see who you get value from, and reach out.

Jaysen Medhurst · Answer

@Kristoffer Bergen, you should really sit down with an accountant with RE experience ASAP. Not only is this a job for a professional (especially in light of last year's tax law), but you appear to be piercing the veil of your LLC by putting the rent money directly into your personal account. Intermingling funds is a big no-no that can expose you to the personal liability that an LLC is supposed to protect you from.

Professional tax and accounting services are a part of doing business and should be seen as investments, not unnecessary expenses.

First Tax Filing for LLC - DIY?

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