Discussion:LLC return filed using 1120S...no way, right?
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| Revision as of 18:03, 19 April 2006 JR1 (Talk | contribs) (Hang on. He did) ← Previous diff |
Revision as of 18:20, 19 April 2006 Sfrey006 (Talk | contribs) (So...the prior C) Next diff → |
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| {{ForumReplyPost|UserID=JR1|Date=19 April 2006|Text=Hang on. He did the check the box to tax that LLC as an S. You're an S now. Read some of the old threads on the topic. Like you, I don't care for this method of becoming an S, but he's an S. So think of him that way. It's ok. }} | {{ForumReplyPost|UserID=JR1|Date=19 April 2006|Text=Hang on. He did the check the box to tax that LLC as an S. You're an S now. Read some of the old threads on the topic. Like you, I don't care for this method of becoming an S, but he's an S. So think of him that way. It's ok. }} | ||
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| + | {{ForumReplyPost|UserID=Sfrey006|Date=19 April 2006|Text=So...the prior CPA had the client pay payroll taxes on the wages ($65k) AND the net income of the company ($41k). This means that the client over paid payroll taxes by $6,273...right? (41,000 x 15.3% = 6,273)}} | ||
Revision as of 18:20, 19 April 2006
Discussion Forum Index --> Tax Questions --> LLC return filed using 1120S...no way, right?
| 19 April 2006 | |
| I have just picked up a small Llc as a client. The prior CPA filed the Llc return on the form 1120S. You can't do that right? By the prior CPA encouraging the client to file as-if they were an S-Corp would allow the company the "flexibility" of the Llc but, the Payroll Tax advantages of the S-Corp. Additionally, cost/charges would be un-necessarily incurred by
1) Prior CPA's charges for 940, 941, and UCT-6 (FL payroll tax) filing.............because, for an Llc they are not needed. 2) The client was told to pay the FL State payroll tax (which is he is exempt from because he is a single-owner LLC One other point.... the client has a solo 401(k). The prior CPA made the company profit sharing limited to 25% of wages....this would be true for an S-Corp but...........sincethe company is a single-owner LLC, wouldn't the company sharing portion be limited to 20% of net earnings to the owner? | |
| 19 April 2006 | |
| Should I amend the client's return? If I don't amend...am I allowed to file next year's business operations on Sch C (in standard single-owner Llc fashion)? | |
| 19 April 2006 | |
| Hang on. He did the check the box to tax that LLC as an S. You're an S now. Read some of the old threads on the topic. Like you, I don't care for this method of becoming an S, but he's an S. So think of him that way. It's ok. | |
| 19 April 2006 | |
| So...the prior CPA had the client pay payroll taxes on the wages ($65k) AND the net income of the company ($41k). This means that the client over paid payroll taxes by $6,273...right? (41,000 x 15.3% = 6,273) | |
