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Get & Give Tax Help for Small Businesses


Hired as Employee, and now Owner wants me to become LLC instead

3 weeks ago I was hired as a Marketing Director for a Surgery Center. I am not receiving benefits, I am paid salary, but it is part time. I have a gas card for the use of my vehicle, but depreciation is not part of reimbursement and I drive over 500 miles per week. The owner of the surgery center contacted me today and told me that after discussion with his accountant he feels it would be best for both of us if I became an LLC, and he hired my "marketing firm" instead of having me as an "employee". He offered to pay for the LLC in my name and any costs incurred upon making myself an LLC.

As an LLC can I do Corp to Corp status with consultant company?


As an LLC can I do Corp to Corp status with consultant company? You only mention S-Corp and C-Corp in your article, so I am just confirming? If so, what are the nuances with an LLC as Corp to Corp?

Thanks much,

partner distribution

how to take partner distribution in a partnership LLC

Advice transitioning from single member LLC to multi-member husband wife LLC

I am operating a single member LLC (independent consultant) with my own EIN and filing taxes under schedule C. In order to do business with another company, I need to reorganize either as a S-corp or a multi-owner LLC. My ideal solution is to do a multi-owner LLC with my wife as a non-working member (hopefully not paying SE taxes). So, I am wondering if this transition is something I should handle in my DIY fashion (I do my own taxes, formed my own LLC, etc.) or something I should engage a professional for? Is so, a lawyer, or a CPA? And, what kind of expense I can expect for assistance.

How should I pay partners in an LLc that does not have any net income

Hi Linda,

We have an LLC partnership. It does not have any net income yet. It is still a loss for the year. We have paid ourselves and I need to know if I should do a 1099 for each of the partners as a contract labor expense or should I do an owner draw even though there was no income and no retained earnings to take the draws out of.


Mileage deduction on personal tax return of member in multi-member LLC

As a member in a multi-member LLC, I receive guaranteed payments (salary) for daily operations of the LLC. I am the only member who receives guaranteed payments. Can I deduct mileage for the use of my personal vehcle on my personal return without running the deduction hrough the LLC?

Husband wife owned LLC, best teated as partnership, s-corp or corporation for tax purposes

Hey Linda,

My wife and I started an LLC in NC. We provide automotive diagnostic and repair services. we are trying to determine the best way to handle our tax situation. I know the IRS will allow us to elect to be taxed as a corporation, s-corp, partnership or it appears a sole proprietorship. Do you have any any suggestions? We are planning to pay ourselves as w-2 employees. is this a good idea?


How should I organize? Single Owner

Hi Linda,

I am buying a business through an asset sale. I will be the sole owner. I am buying the business using 70% equity from my money and about 30% in loans. I still can't decide on whether to do SMLLC or S-Corp. I will most likely have a loss during the first year after section 179 expense, amortization of franchise fee, start up costs, etc...

Combined W-2 & Contract earnings tax question

Hi Linda,
I have been W-2 thus far in 2009. I might get a corp-to-corp contracting opportunity soon. 2009 w-2 earnings: approx 90K. 2009 (expected) contract earnings: approx 100K. In 2010, I expect to be contract-only.
What would you advise me to look into?
If I create an LLC and elect a certain tax status for 2009 am I able to change that election for 2010?
Thanks, Mike

LLC Distribution of Profits Delayed

Our small LLC (four members) which is just over a year old, made a lot of mistakes as we stumbled through our first year. We managed to get our 2008 taxes filed on time. In our filing, the small amount of profit that had accrued was divided among the four members who were listed in the filing. However, no member received any distribution of those profits during 2008, nor, in fact, has the profit been distributed to the members as of this June 2009. My question is this: do the members owe any tax liability for 2008 based on earnings that have not been paid?

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