Discussion:S-corp SE income from LLC
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| Revision as of 17:50, 8 June 2009 GorillaBall (Talk | contribs) (Sounds too good) ← Previous diff |
Revision as of 23:27, 8 June 2009 PBinNJ (Talk | contribs) (If the other mem) Next diff → |
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| {{ForumReplyPost|UserID=GorillaBall|Date=8 June 2009|Text=Sounds too good to be true to me also, that's why I wanted to bounce it off some of you out there.}} | {{ForumReplyPost|UserID=GorillaBall|Date=8 June 2009|Text=Sounds too good to be true to me also, that's why I wanted to bounce it off some of you out there.}} | ||
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| + | {{ForumReplyPost|UserID=PBinNJ|Date=8 June 2009|Text=If the other members of the LLC agree, why not elect to be taxed as an S corp? Just put your client on reasonable salary and the rest flows thru to your client on a K1.}} | ||
Revision as of 23:27, 8 June 2009
Discussion Forum Index --> Advanced Tax Questions --> S-corp SE income from LLC
Discussion Forum Index --> Tax Questions --> S-corp SE income from LLC
GorillaBall (talk|edits) said: | 5 June 2009 |
| I have a client that is an member of 3 LLC's that have previously reported business income as SE income to him on their K-1's. My client wants to set up an S-corp and contribute his ownership interests in these three LLC's to the S-corp. If he does this will the income from the LLC's flow through the s-corp to him individually as SE income or non-SE income as is normally true with S-corp income? | |
| 5 June 2009 | |
| I'm not sure, just thinking out loud, but sounds like turning lead into gold to me. If it is SE income in the LLC, wouldn't it retain its character as it flows through the S-Corp to the shareholder? | |
GorillaBall (talk|edits) said: | 8 June 2009 |
| Sounds too good to be true to me also, that's why I wanted to bounce it off some of you out there. | |
| 8 June 2009 | |
| If the other members of the LLC agree, why not elect to be taxed as an S corp? Just put your client on reasonable salary and the rest flows thru to your client on a K1. | |
