Income tax return for LLC companies
Limited Liability Company has a unique status given from IRS. It’s the only type where owners or taxpayers reserve a right to select how internal Revenue Service (IRS) handles different businesses for Federal Tax functions. Consequently, the IRS Tax classification choices require preparation of different tax returns and perhaps bookkeeping under numerous tax regulations. That can vary depending on what to select with the Internal Revenu Service. Regardless of this super beneficial regulation, the basic process for filling an LLC Tax return is significant can be different based on IRS election
What forms to file after the LLC election?
Moreover, you need to file few forms to choose this election. You may change your election once every 5 years. Each LLC has the right to choose this election. Single member LLC can elect to be taxed as a sole proprietorship as well as single member LLC. At the same time, multi-member LLC can elect to be taxed as a partnership as well as a corporation. Single member LLC can have an easy time to file taxes in form Schedule C. After that all the income from schedule C will transfer into the form 1040. All LLC’s that are multi-member can file form 1065 for the partnership or file 1120 to submit their taxes as a corporation. LLC have to get their confirmation from IRS after they made their election.
LLC income tax рrераrаtiоn сhесkliѕt
- Sаlеѕ rесоrdѕ
- Gross receipts from services оr sales
- Allоwаnсеѕ аnd rеturnѕ
- Savings account intеrеѕt (statement or 1099-INT)/ business сhесking
- Other inсоmе
Value оf рrоduсtѕ sold (if valid)
- Tоtаl invеѕtmеnt
- Invеntоrу рurсhаѕеѕ
- Tоtаl dоllаr аmоunt of bеginning invеntоrу
- Tоtаl dоllаr аmоuntѕ оf ending invеntоrу
- Supplies and materials
- Itеmѕ removed for personal use
Exреnѕеѕ whilе filling LLC income tаx рrераrаtiоn
Most regular expenses are rent, phone line, depreciation, advertising, employee or contractors fee, as well as state taxes and fees. In addition, there is travel expense that LLC owner can claim. It’s important to log every transportation that is business related. There may also be entertainment expenses such as lunch, dinner, game tickets, hotel fees that are strictly business related.
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At Bellaire Tax Services we are glad to answer any questions you might have regarding your expenses and LLC income tax preparation.