Meet Our Clients

Meet Our Clients

Our customers make up a diverse arrangement of companies and personalities. From online vendors in the e-commerce trade, to the mechanic on Main Street, to consultants, C...

LLC Tax ID or LLC EIN – What is it?

LLC Tax ID or LLC EIN – What is it?

For a single member or sole owner LLC there may be no need to have a federal tax id however if there are more than one members and/or employees involved than the LLC will...

LLC Tax Preparation

LLC Tax Preparation

Preparing the taxes for any company is a daunting tax and should be handled by a licensed and certified professional. LLC tax preparation can be very confusing, especiall...

LLC Tax Forms

LLC Tax Forms

There are a number of different tax forms that must be filed, and the more money you make, the more forms you are likely to have to file. When you are a LLC member, you w...

LLC Tax Benefits

LLC Tax Benefits

What are the LLC Tax Benefits?  There are many reasons to explore using a limited liability company for your business, including the tax benefits. There are some drawbac...

LLC Self Employment Tax

LLC Self Employment Tax

As an owner of a limited liability company you are not considered to be an employee. You are instead, a self employed business owner whether you have full stake in the co...

LLC Taxation

LLC Taxation

LLC taxation is different from that of a corporation or other business entities in a number of ways. First, the LLC does not pay federal taxes on its earnings through the...

Why You Need A CPA To File LLC Taxes

Why You Need A CPA To File LLC Taxes

If you have a LLC or Limited Liability Company, you may think to file the LLC taxes yourself. However, if you are concerned that you don’t understand the LLC tax code o...

Register for our FREE Intro to LLC Taxes Webinar --->

If you have a LLC or Limited Liability Company, you may think to file the LLC taxes yourself. However, if you are concerned that you don’t understand the LLC tax code or that you might be about to make a costly error in your filing, it is better to hire a tax advisor who knows not only the tax code, but can find the best options for you, saving you thousands of dollars in needless taxes and fees.

The LLC self-employment tax rules were set up to help small companies avoid having to pay some very large amounts of federal taxes in many cases, but did not absolve them from paying any taxes at all. Forming a limited liability company (LLC) does not allow a company not to pay taxes, it simply changes the way that those taxes are figured by the IRS. While it may mean no more federal taxes on the business itself, it does not mean the same thing for each member or partial owner of the LLC and will not end the cost of state taxes.

A LLC can be deemed either a single owner or multi-owner LLC by the IRS and will depend on the number of technical owners there are. Each owner is referred to as a “member” and will have to file taxes on their share of the businesses profits and losses. The amount of profits that would rightfully be theirs is called a distributive share and is taxable whether the amount was realized, distributed or not. Even if the amount of your share had to stay in the business, you must still pay the taxes on it. The amount of your distributive share will depend on the amount that you put into the business. For instance, if you merely invested in the company, but do not actually do anything toward its success otherwise, you may have a lower share amount than someone who not only invests their money but their time and hard work as well.

An experienced advisor that handles LLC taxes will know which tax forms you need to file and can prepare them all for you. There are many to forms to include, not only for your personal taxes but to report the income and expenses as well as the profit or loss of your LLC.

States have their own individual rules for handling LLC and their taxes although many of them do have similar rules. While most do not have taxes specifically for the LLC they do impose fees that can be as small as $100 or as high as $800. Use the form to the right to register for a FREE 30 minute webinar to get educated on the tax implications of your business.