In a Limited Liability Company (LLC), the business structure allows for the removal of the “double taxation” that occurs when a company pays taxes on its earnings, and then distributes its earnings to its owners and employees who also pay taxes on their earnings. An LLC itself pays no corporate income taxes because the IRS treats it as a sole proprietorship or partnership. All profits are “passed-through” directly to the owners, who are taxed. This means company’s income or losses are generally reported separately by the owners of the business on their individual income tax returns.
Tax-prep software or large tax-prep retail chains may not be able to offer the personalized LLC income tax preparation services that you require. Whatever the structure of your business, we can assist with your LLC income tax preparation and filing requirements.
Single Member LLC
A single member LLC is treated as a sole proprietorship, and its income and tax obligations are reported on the owner’s individual income tax return. We can prepare your return, making sure to take every business deduction to which you are entitled as a business owner. We prepare form 1040, as well as Schedule C for Business Income and Expenses, and Schedule SE for Self-Employment Income (payroll taxes). We’ll help you navigate the differences in federal and state requirements for each single member LLC.
Multiple Member LLC
Multiple member LLCs are treated as partnerships by the IRS. We help prepare Schedule K-1s showing each partner’s share of the LLC’s income or loss, and we can then transfer the information from the K-1 to the owners’ individual income tax returns. We also prepare the Form 1065, the Partnership’s informational income tax return, which is submitted to the IRS.
LLCs with Employees
If your LLC employs people other than the owners, we can help you prepare all necessary payroll tax paperwork in a timely manner. We can calculate the tax deposits for your payroll periods, or for returns that are filed quarterly or annually. We can also prepare your submissions to reduce your administrative time.
At the end of the fiscal year, we prepare 1099s or W-2s for your contractors or employees, depending on the nature of their employment.
Services for Single Member LLCS
We can provide analysis and advice for home office deductions, equipment depreciation, pension, 401K and other services.