taxguy057 Posted February 1, 2013 Report Share Posted February 1, 2013 I have a client who just last year started out on her own business and registered it as an Pllc in the state of NC. I've never filed taxes on such before. From what I have gathered from reading on the IRS site, it basically telling me to treat it as a "disregarded enity not separate from its single owner for income tax purposes. So do i just file on a Sch C and be done with it. She has no employees so no employment or excise tax is revelant at this time. Well from what I've read so far... Any and all help would be greatly appreciated for you tax gurus out there! Thanks alot in advance... TG Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 2, 2013 Report Share Posted February 2, 2013 I have a client who just last year started out on her own business and registered it as an Pllc in the state of NC. I've never filed taxes on such before. From what I have gathered from reading on the IRS site, it basically telling me to treat it as a "disregarded enity not separate from its single owner for income tax purposes. So do i just file on a Sch C and be done with it. She has no employees so no employment or excise tax is revelant at this time. Well from what I've read so far... Any and all help would be greatly appreciated for you tax gurus out there! Thanks alot in advance... TG You should refer him to a tax pro that is experienced in that area. It is a minefield for you if you don't! Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted February 2, 2013 Report Share Posted February 2, 2013 Ye, TG, it just goes on the Sch C, as long as it is a single member PLLC. If she got an EIN for it, use that on the Sch C, if not, just use her SSN. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 2, 2013 Report Share Posted February 2, 2013 >>it basically telling me to treat it as a "disregarded enity not separate from its single owner for purposes<< That is only the default treatment, but NOT her only tax choice. She is a professional and has a right to competent service from her financial advisors. So get it right or refer her to someone who can. You need to discuss projected profit and loss, auto and other expenses, fringe benefits, Social Security and income tax rates, and other factors that could make Form 1120 or 1120-S a better choice, maybe even much better. Or maybe not as good. Either way, a page of interview notes can provide you peace of mind. The fastest way to begin is to download Continuing Education from someplace on the topic of Choice of Business Entity. That would at least show you the basic issues, though hardly qualify you to give reliable advice. I apologize if my tone sounds a bit stark. Even though one judge thinks tax preparers don't need to know what they're talking about. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 2, 2013 Report Share Posted February 2, 2013 Agree with jainen TOTALLY! Quote Link to comment Share on other sites More sharing options...
michaelmars Posted February 2, 2013 Report Share Posted February 2, 2013 The posts says she started this last year so its to late to retroactively elect corp status so for 2012 she defaults to a sch C. Your advise about exploring options certainly is smart for future years. Quote Link to comment Share on other sites More sharing options...
jainen Posted February 2, 2013 Report Share Posted February 2, 2013 >>its to late to retroactively elect corp status<< That depends (at least in part) on the practitioner's skill. 1 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted February 2, 2013 Report Share Posted February 2, 2013 >>its to late to retroactively elect corp status<< That depends (at least in part) on the practitioner's skill. I agree totally with jainen again! (looks around to see if the sky is going to fall....) Quote Link to comment Share on other sites More sharing options...
taxguy057 Posted February 4, 2013 Author Report Share Posted February 4, 2013 Appreciate all the input. She has been my client for 8 years now and I'm not going to give her up that easy. We discussed the fact of her starting out on her own with this biz. She basically does contract work for a few med companies but has decided to take on some of the same work she's been doing under her on entity. She now is getting paid by one client with a 1099. Nothing major yet but I will get well educated on the topic for the future bc this does have the potential to be big soon. Thank again.. Quote Link to comment Share on other sites More sharing options...
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