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Help ensure your partnership or LLC complies with tax law
October 1, 2024
Categories: Guaranteed Payment, LLC, Operating Agreements, Partnership
When drafting partnership and LLC operating agreements, various tax issues must be addressed. This is also true of multi-member LLCs that are treated as partnerships for tax purposes. Here are some critical issues to include in your agreement so your business remains in compliance with federal tax law. Identify and describe guaranteed payments to partners For income tax purposes, a guaranteed payment is one made by a partnership that’s: 1) to the partner acting in the capacity of
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Closing a business involves a number of tax responsibilities
August 22, 2024
Categories: C Corp, Corporate Tax, Form 1065, Form 1120-S, Form 966, Partnership, Schedule C, Scorp, Sole proprietorship
While many facets of the economy have improved this year, the rising cost of living and other economic factors have caused many businesses to close their doors. If this is your situation, we can help you, including taking care of various tax responsibilities. To start with, a business must file a final federal income tax return and some other related forms for the year it closes its doors. The type of return that must be filed depends on the type of business you have. For example: Sole Proprietors will
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Growing your business with a new partner: Here are some tax considerations
May 16, 2024
Categories: Depreciation, Partnership
There are several financial and legal implications when adding a new partner to a partnership. Here’s an example to illustrate: You and your partners are planning to admit a new partner. The new partner will acquire a one-third interest in the partnership by making a cash contribution to the business. Assume that your basis in your partnership interests is sufficient so that the decrease in your portions of the partnership’s liabilities because of the new partner’s entry won’t