Last minute LLC client

[Terry D EA]

I have a client that has been with me for years but decided this year to show up later than ever (Monday this week) with a surprise that went something like this: Client, oh by the way, there is a new twist to my taxes this year. I started a LLC business and I hope you can handle the tax prep for the business for me. Me: okay I can handle it but only if it goes on an extension. Client agreed.

Now, this LLC is only 8 months old. NC wants the annual report fee and it must be included with an extension. This client has not obtained an EIN number and says that his SS# has been his tax ID. I advised him to let me get the EIN number and he agreed. This is a single member LLC, I know he has the choice to be taxed as disregarded entity and can file a schedule C. I need some clarification on how this is done and is this the best way to go? It makes sense to me to get the EIN first and then proceed with the extension. Do I use the 4868 or file an extension for form 1065 , 7004 I believe. I've had so much dropped on me lately that I can't think straight

[joanmcq]

SMLLC would be included on tp's 1040. Not sure how NC handles the state. Terry, I'm there with ya.

[Terry D EA]

Thanks Joan for the quick reply. From what I just read, the SMLLC can operate off of the member's SS# if is treated as a disregarded entity and has no employees which there is no payroll reporting. But, NC does require a SMLLC that is treated as a disregarded entitiy for Federal tax purposes to file a NC corporate tax return and pay the franchise tax. Now, my delimma is, do I file a NC corporate extension and a personal extension? This makes sense to me to do so.

[joanmcq]

Yes.

[Terry D EA]

Thanks again!