Additional Tax Issues

California allows a single person to own an LLC. This causes problems from a tax perspective. The IRS doesn't really acknowledge the existence of LLCs owned by one person. The IRS takes the position that you must have two people to be taxes as a partnership. Accordingly, it treats single owner LLCs as sole proprietorships. The problem with this result is that you end up paying self-employment taxes.

While LLC structures provide significant flexibility, the structure is not always the best choice for a small business. Make sure you speak with competent tax counsel prior to forming an LLC for your business.

">

Online Tax Preparation

Home

California Limited Liability Company - An Overview

Index of General Tax Articles


Index of More General Tax Articles

Home
2009 Tax Calculators
Click for accredited member's reliablility report.CPA Moms are a member is good standing with the Better Business Bureau in Denver, Coloado - Click on BBB Logo for report
Tax Cash Today - Western Union
Index of Business Tax Articles


IRS will give your $7500 Down Payment?
2009 Tax FAQ
2009 Tax Tips Newsletter
Amended Previous Year's Tax Return
Moved? IRS may have your check
2009 E-File Benefits
2009 E-file FAQ
2009 Check your E-file Status
Single Moms & $2917 Refund
Lastest 2009 Tax News
2009 Tax Terms
2009 Tax Calendar

 
LLC * California Limited Liability Company - An Overview   

Richard A. Chapo

Many people are surprised to learn that the LLC business entity is a fairly recent phenomenon. Wyoming was the first state to legislate the creation of LLCs in 1977. Most states didn't jump on the LLC bandwagon until 1988 when the IRS classified the LLC as a pass through entity for tax purposes. This ruling turned LLCs into the popular monster they are today. Now every state has legislation allowing the creation of LLCs and California is no different.

What Are The Advantages To Forming A LLC?

The LLC business entity offers many advantages to small businesses. An LLC is going to provide a shield between your business activities and personal assets identical to a corporation. Unlike a corporation, there are far fewer corporate formalities. Instead of setting up payroll, you can take draws from the entity. You are not required to maintain a balance sheet, although this is recommended. In short, the LLC entity is all about flexibility.

Should I Form A California LLC For My Business?

Maybe. While LLCs offer significant flexibility to small businesses, California charges an LLC tax that can really cramp your profits. This tax is charged on your gross revenues for the "privilege of doing business in California" as an LLC. Lucky you. Depending upon your situation, forming an "S" corporation may be a better option in California.

Additional Tax Issues

California allows a single person to own an LLC. This causes problems from a tax perspective. The IRS doesn't really acknowledge the existence of LLCs owned by one person. The IRS takes the position that you must have two people to be taxes as a partnership. Accordingly, it treats single owner LLCs as sole proprietorships. The problem with this result is that you end up paying self-employment taxes.

While LLC structures provide significant flexibility, the structure is not always the best choice for a small business. Make sure you speak with competent tax counsel prior to forming an LLC for your business.

-------------------------------------------

Blue-ribbon Panel Endorses Road Pricing, Shift From Gas Tax - New York Times
Washington PostBlue-ribbon panel endorses road pricing, shift from gas taxNew York Times, United StatesBy JOSH VOORHEES, Greenwire A blue-ribbon federal transportation panel called today for a temporary...

-------------------------------------------

-------------------------------------------

Taxes - Mass.Gov
Links to Department of Revenue (DOR) forms, filing options and an online guide along with information regarding the various types of taxes can be found here.
Taxation In The United States - Wikipedia, The Free Encyclopedia
Tariffs were the largest source of federal revenue from the 1790s to the eve of World War I, until it was surpassed by income taxes. The first federal statutes imposing the legal ...

-------------------------------------------

Richard A. Chapo is with <strong>SanDiegoBusinessLawFirm.com</strong> - This article is for information purposes only. Nothing in this article is intended to address the reader's specific situation nor does it create an attorney-client relationship.

Online Tax Preparation

General Articles about Taxes

Getting a Tax Credit for Your Kids by Richard A. Chapo

As you know, raising a family is a full time job and can put stress on your finances. Fortunately, you can claim a tax credit to help cut your IRS bill if you have kids.Getting a Tax Credit for Your KidsWith...

California State Controller announces delay for tax refunds by

Due to the state's persistent cash and budget problems, the State Controller announced on Friday, January 16, 2009 that he will have to delay refunds for 30 days starting February 1, 2009 for Personal...

Small Business Tax Credit - Americans with Disabilities Act by Richard A. Chapo

Many small businesses complain when confronted with the expense of complying with the Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset...

Understanding the Recovery Rebate Credit by

The Internal Revenue Service warns that many taxpayers are mistakenly trying to double-dip on last years federal tax rebate when they file their tax returns this year -- and the IRS is catching the errors. A...

Tax Accounting by Sumit Sehghal

Accounting is the recording, interpretation and reporting of financial transactions. Each and every business must keep proper record of all such transactions. There are several branches of accounting such...

Use Child Tax Credit for Tax Savings by Keith Hoyng

Now, here's a real tax savings to the individual taxpayer with dependents. The child tax credit is a direct federal income tax credit based on the number of dependent children in your family. This federal...

Be All - End All Tax Attorney Blog!!! by David Jacquot

Blogs have become a vital source for current information and the exchange of critical thought on many topics. The practice of law is no exception.Therefore, a new Blog has been created to provide educational...

Business Tax Articles of Interest

Can Your LLC Elect S Corporation Tax Status by Robert Montgomery

Yes, an LLC can be taxed similar to an S corporation. You may be wondering, why would you even want this type of tax treament? Read on and I'll explain.Owners or members of an LLC have the option to choose...

Commercial Lender Secures 100% financing for Apartment Complex by Sam Jackson

Linda Hogan, a loan officer with Rogers Funds LLC , Commercial Lender , has announced that the firm recently closed $15,500,000 in Commercial mortgage financing for an apartment complex in Boston, MA....

Should You Form a Nevada LLC? by Simon Maher

The short answer is yes...if your business is located in Nevada. Otherwise, your best bet is to form your business entity in the state where your business operates.There many myths about forming Nevada...

CenterPoint-Solutions, LLC Partners With Greystone.Net, Inc. by Patty Briguglio

CenterPoint-Solutions, LLC is pleased to announce the firms alliance with Greysone.Net, Inc. of Georgia, an organization that provides Internet and World Wide Web solutions and services for healthcare...

LLC vs S Corporation: Which is Better? by Stephen L. Nelson, CPA

"S Corporation or LLC?" is a common question for new business owners. I have several people call me each week asking this.I always tell them the question is impossible to answer. And here's why. An LLC...

Disclaimer: The links, articles, news items give you information that has been collected from many independent sources.

The articles, links or news items are for general information only. Their appearance on the web site does not mean the article, link or news is endorsed by the owner of the web site. Use this information at your own risk.

 
Recovery Rebate Credit
Single Moms get $2917?
California too Broke to Give Tax Refund?
Tax Cash From Western Union
$7500 Homeowner Down Payment
Alimony Deductions
Day Care Deductions
Moving Deductions
Contribution Deductions
Job Hunting Deduction
Education Deductions
Adoption Deductions
Medical Deductions
Mileage Deductions
Car Donation Deductions
Bad Debt Right Off
Hybrid Cars Deductions
Educator Deductions
Adoption Deductions
CPA Moms Master Index
Overview - Type of Business Entities
Sole Proprietors
Partnerships
S Corporations
How to Incorporate
Incorporating in California
Incorporating in Delaware
Incorporating in Nevada
C Corporations
LLC's - What is it?
Business Mileage Expenses
Office in Home
Business Deductions
Bankruptcy
Claiming Social Security Disability
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Repair
Social Security
Deliquent Tax Returns
Back Taxes
Garnishment
Retirement Planning
Self Directed IRAs
Roth IRA
Traditional IRA
Iniherited IRA
Reverse Mortgage
Roth 401k
Borrowing from your IRA
Estate Planning
Social Security Benefits
Retirement Planning
Day Trading
Tax Preparation
Electronic Filing
Incorporating Services
Representation before IRS
Non Profit Services
Accounting
Bookkeeping
Sale of Residence
Sale of Rental Property
1031 Exchange
Real Estate IRA
Refinance your Home
Accounting
Trucker's Accounting
CPA Letter

  
  
  

  

Privacy Policy
......... About Us  ......  Disclaimer ..... Copywrited 2005 - 2009 & Developed by  Tax Net Inc