Discussion:LLC with husband and wife members
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
(Difference between revisions)
| Revision as of 22:25, 14 April 2008 CrowJD (Talk | contribs) ← Previous diff |
Revision as of 22:27, 14 April 2008 Tiredoftaxes (Talk | contribs) (The IRS wouldn't) Next diff → |
||
| Line 13: | Line 13: | ||
| }} | }} | ||
| + | |||
| + | {{ForumReplyPost|UserID=Tiredoftaxes|Date=14 April 2008|Text=The IRS wouldn't look at it as the husband trying to avoid FICA since he is already at his wage max with his other job?}} | ||
Revision as of 22:27, 14 April 2008
Discussion Forum Index --> Basic Tax Questions --> LLC with husband and wife members
Discussion Forum Index --> Tax Questions --> LLC with husband and wife members
Tiredoftaxes (talk|edits) said: | 14 April 2008 |
| I have a new client who just gave me data. They started an LLC during 2007 but never got a tax ID. The husband and wife are both members. The business existed for about 6 months during the year. He contracted with companies under his LLC name. However, since they didn't get tax id, the 1099-misc's were sent to him under his SS# under his name and then D/B/A the LLC. I need to file extensions, but do I need to get tax id for LLC as partnership and file a partnership extension? Or since it is under his SS#, do I forget about the LLC. Help!! | |
| 14 April 2008 | |
| I'd file as Scd. C with clients consent. I don't see why they still can't operate under the LLC. H-W who are the sole owners of a business, who both materially participate in the business, and who file a joint return can elect to file as sole proprprietors starting with 2007 returns. Follow 2007 instructions to Scd. C for reporting the respectives shares. | |
Tiredoftaxes (talk|edits) said: | 14 April 2008 |
| The husband did all of the work, do you think that I should just give him all of the income since the 1099's are under his name? With regards to the consent, should I just create some type of statement regarding the options and let him choose? What is the chance that the IRS would catch that if there never was a tax id requested? | |
| 14 April 2008 | |
| Your saying they never got a tax id for the partnership? Does not sound as if it even existed as a partnerhsip to me.
What's there for the IRS to catch, there's no mystery or hiding to it. The Husband did all the work, no 1099's to anyone but him, put him on Scd. C. Theoretically, there are legal consequences here for the wife, it could be remotely argued that her expectation of being in a partership has been deprived of her. My response would be, what partnership? You never ran it as one. Discuss it with them. Keep it as simple as possible. | |
Tiredoftaxes (talk|edits) said: | 14 April 2008 |
| The IRS wouldn't look at it as the husband trying to avoid FICA since he is already at his wage max with his other job? | |
