NECPA in NEBRASKA Posted February 17, 2011 Report Posted February 17, 2011 This is probably a stupid question, but I am having trouble searching since LLC and Schedule C are less than 4 letters. My client became an LLC in the middle of the year. Nothing changed except the name and he now has a federal ID#. Two schedules make no difference in tax, except that I have two 8829's and asset schedules. Do I need to have two of everything? Thanks! Quote
grandmabee Posted February 17, 2011 Report Posted February 17, 2011 AS LONG as he is a single member llc you can use just one sch c Quote
NECPA in NEBRASKA Posted February 17, 2011 Author Report Posted February 17, 2011 Thanks! That's what I was hoping. Quote
Gail in Virginia Posted February 17, 2011 Report Posted February 17, 2011 Just to play devil's advocate, since he is trying to limit liability by forming an LLC, wouldn't it be better to have a separate Sch. C for the period after he became an LLC and thus keep everything completely separate? From a tax standpoint I don't see any reason that you can't do just one form, but I am wondering if from a legal standpoint it makes any difference in determining his seriousness in separating his business from himself personally. I don't know, and I am probably over-thinking this because I am tired. Quote
NECPA in NEBRASKA Posted February 17, 2011 Author Report Posted February 17, 2011 His bookkeeping is separate, but you raise a good point. I will have to research. Quote
NECPA in NEBRASKA Posted February 17, 2011 Author Report Posted February 17, 2011 I'm not even sure what the LLC will protect, but I'm not an attorney. He has no employees or subs. Quote
samingeorgia Posted February 17, 2011 Report Posted February 17, 2011 Since the LLC is a disregarded entity for tax purposes, I don't see how a second Schedule C would have any impact on liability protection. Quote
NECPA in NEBRASKA Posted February 17, 2011 Author Report Posted February 17, 2011 That's kind of what I thought. It would be different if he had to file a 1065. Quote
GeneInAlabama Posted February 17, 2011 Report Posted February 17, 2011 IF he has employees, how would that affect his FUTA and SUTA? Quote
NECPA in NEBRASKA Posted February 17, 2011 Author Report Posted February 17, 2011 He has no employees. Quote
grandmabee Posted February 18, 2011 Report Posted February 18, 2011 IF he has employees, how would that affect his FUTA and SUTA? IF he had employess it would have been a new fed ID number and he would have to file separate and max rates would start fresh Quote
Lion EA Posted February 18, 2011 Report Posted February 18, 2011 If it's the same business, you can do one Sch C. However, I'd alert my client to the liability issue and let him make the choice. After all, 2010 is over, so unless he has a skeleton he hasn't told you about, it may not make any difference in his liability. But, you don't want to make that decision for him and tie your liability to his! 2011 will have his LLC reported under it's own number, but on his return, no issue after his first year as an LLC. Quote
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