Tax Questions

An LLC can elect to be taxed as a corporation and file a separate if so. A single member LLC, absent a corporate election, falls under the IRS default rule as a "disregarded entity" and the member reports income and expenses on his individual income tax return, Sch C, Sch E etc. Two (or more) member LLCs file a partnership return absent a corporate election.

All taxable entities pay federal tax on the net income. Some states assess a tax on gross income, such as the Texas margin tax, not LA.

This is a great country, isn't it?

A two member LLC will need to file a partnership income tax return. No tax is paid at the partnership level for the members. A partnership return is purely informational reporting to the govt. The income or loss flows through to your (and your partners) individual income tax return via a schedule K-1 based on ownership %.

Thanks for the info... Based on that information, i guess i should bring my taxes to someone this year then right? Is Turbo Tax or any similar software able to do any of those things?

Turbo tax may have a partnership module, but I'm not familiar with it.

I can't say I've seen many (or any) amateurs successfully prepare a partnership income tax return.

I would recommend finding a CPA firm to help you. Try the smaller firms, they may be somewhat less expensive than the larger firms.

Good luck with your new business.

quote:

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Chadg

Come and see me at Lemoine & Associates

926-8299

I'll help.

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I need to see someone for sure, but the only time i am anywhere near baton rouge is on sat nights during football season.. And most of that time in no shape to talk finances... lol