Margaret CPA in OH

:bday: and many more!

Silly, they look up to the ceiling and remember!

Thanks again. No, they have not been advised of the late filing information. As I mentioned, I received the data on Tuesday and saw income from sales, hence the meeting this evening. At our initial meeting I was assured that there was only some market sort of research in 2007 and some product given away for feedback. We'll see what happens. I know they won't like the situation and maybe we an appeal penalties because they were truly ignorant. Sigh...we'll see. It's about that well thought out and capitalized business plan, you know?

Thanks, jklcpa, for the additional comments. The informal p'ship in 2007 didn't have a name but I think it will be the same as the name chosen for organization as LLC in 2008 - minus the LLC at the end. And good reminder about name change and type boxes, too. I still am uncertain about the TIN issue. Do you think using "applied for" in 2007 and showing the issued TIN for the LLC would be correct? Thanks again! They are coming over this evening so I hope to have these ducks lined up and get this done.

:bday: and many more!

:bday: and many more!

Thanks for your usual great information, KC. Thanks especially about the UPE as a verbal agreement. I will pass along the suggestion to include in the written. They have extensive revisions to make with references to dividends and the company owning shares among other things. There is also a major part allowing self dealing. I questioned that and advised reconsideration and careful review with an experienced attorney. Expenses paid in 2008 up to the state charter date of Feb. 20 are $4345.64 mostly for bottling supplies and sales were $460. They were functioning as the LLC as of January 1. It just took that long for the attorney to file articles and Ohio to process. They had the website in mid-January. In reading in QF, I see Rev. Ruling 84-52 that seems to fit this scenario, an existing partnership converting to an LLC. It says that the p'ship's tax year doesn't close upon conversion absent a sale, exchange or liquidation of a partner's entire interest. It does say that the new p'ship (LLC) does not need to apply for a new TIN. But the "old" one never had a TIN. Maybe on 2007 I could put "applied for?" My head hurts and I still have my BBQ restaurant to do. All by Sept. 15 because I leave for a dive trip in Indonesia. My mind is already gone! Gotta pull myself together here and Think!

So in 2006 a family (mother, son and daughter in law) decided to import olive oil from Grandma's groves in Greece and sell it. They sensed it could be a viable business (sold $900 worth in 2007) so formed an LLC in Feb. 2008. No reporting was made in 2007. The oil imported in 2006 was actually mother's private stash which she "contributed" to the p'ship to see if it would sell (son's idea, he just finished his MBA last week). They came to me early enough to file an extension for 2008 and ONLY NOW are getting the actual data in my hands. So I would like to file for 2007 as well as 2008. They didn't get an EIN until the LLC was formed so is that a different partnership from the group in 2007? There was no initial capital paid in, each just bought oil, bottles, paid for shipping and travel out of pocket. You know they all had to go to Greece to meet with the supplier and arrange shipments, of course. There is still no separate checking account (they promised to open one) but every expense and sale is documented. It will be a viable business and probably profitable this or surely next year. They already have contracts with some local specialty stores. The operating agreement is still a work in progress so doesn't address unreimbursed p'ship expenses. I would like to treat those expenses not paid from sale proceeds as unreimbursed although I believe they do want to get paid back. I don't think scores of little loans to the LLC would be correct, though. Any comments, observations, hints, etc. would be most welcomed! I guess having a well thought out and capitalized business plan just isn't something a lot of folks do, is it? Thanks!

:bday: and many more!

Congratulations and welcome to the club! It is a dubious distinction, to be sure, nonetheless, be PROUD!

:bday: and many more!

:bday: and many more!

:bday: and many more!

:bday: and many more!

Another caution is to be sure that the money has not been donated for a charitable contribution but specified for an individual to receive. The governing body must have full control over the funds. If a particular donor wrote on a check something like "for John Smith," I would be cautious.

That was fun! I remember far too many of those, too...

I have done a similar thing a few years ago for a small non-profit. I sent 3 together with a cover letter stating volunteers, etc. and asked consideration for abatement of penalties and interest. They had no tax liability, however, so it may have been easier than if there was tax owed. It worked for me.

:bday: and many more!

:bday: and many more!

:bday: and many more and thanks for all you do for all of us!

:bday: and many more!

:bday: and many more!

:bday: and many more!

:bday: and many more!

Yes, thanks, Catherine. And congratulations on being asked to return. That speaks so well of you and your expertise. I'm eager to listen and learn and look forward to subsequent broadcasts!