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.

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.

Heather

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?

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?

thanks

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...

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

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?

I have a business that is an LLC and opened a separate location with a DBA thinking that we can use that main locations EIN and LLC. I did this to bill medical clams for 2nd location as a DBA under their EIN number. I just found out that the all the medical money received for that 2nd location needs to go back since there are 2 EIN numbers. How can this be corrected? when you open a DBA, does it come with a separate EIN number, or does it go with the LLC. Can I cancel/ withdran the other EIN number so I do not have to pay back any money?

Hi Linda,

I am the only member of my LLC, and just starting to bring in some income. My husband does some of the work, but he has a regular full-time job and I don't give him any kind of paycheck--and plan to file separately, mostly because he has an ex-wife. Really don't want her to pry into my business or my income.

What are the rules about other people working for my LLC if I don't pay them? I want to keep everything legal and on the up-and-up, but don't want any more income reflected to my husband.

Thanks

Nancy

Hello Linda,

First of all, I searched the website for the answers and didn't get the exact right answer so I ended up posting as seperate question.
Scenario: 2 member (husband and wife) LLC. Husband works as a software consultant and invoices his client thru the company and wife is not a active member.

Questions: