schirallicpa Posted June 23, 2021 Report Share Posted June 23, 2021 My client has received a notice that they had not filed a 2019 corp return for an LLC. I did some research on the PA DOS website and found the the LLC was created in 2013. My client Taxpayer is the only member. It has a separate EIN. I have done the taxes for this client for several years. They have never indicated that this LLC exists. I have always reported this as Schedule C. So - my question is, in PA is an LLC considered a corp? Do I need to respond by filing past due corp tax? Or can I respond by saying the LLC has always reported as a sole proprietor. I'm totally missing something here. Was there some election that should have been made so the LLC would be treated as a sole? I have never reported a different EIN on schedule C either. Appreciate anyone's' help. Thank you Quote Link to comment Share on other sites More sharing options...
Lee B Posted June 23, 2021 Report Share Posted June 23, 2021 There are other reasons for having an EIN for a SP. Some financial institutions require an EIN before they will open a business checking account. Some owners want an EIN so that they won't have to disclose their SSN for identity security reasons. 1 Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted June 23, 2021 Author Report Share Posted June 23, 2021 My confusion lies in why the state of PA sent a notice looking for a corp return. I am asking if PA would not leave as a disregarded entity unless an election was made. Maybe it works differently in PA? 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted June 23, 2021 Report Share Posted June 23, 2021 SMLLC's operating as sole proprietorships would follow the federal filing and file a Sch C for PA purposes. For LLCs that are taxed as C corps, PA would expect a corp return PA RCT-101 to be filed. Also, for periods prior to Jan 1 2016 for LLCs including those being taxed on Sch C as disregarded entities, PA required filing the PA RCT-101 for the Capital Stock/Franchise Tax. https://revenue-pa.custhelp.com/app/answers/detail/a_id/1382/related/1 https://revenue-pa.custhelp.com/app/answers/detail/a_id/972/related/1 I think it is odd that PA is asking for a 2019 corporate return. Maybe some of our PA preparers will chime in with more information on this specific issue. 1 Quote Link to comment Share on other sites More sharing options...
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