Discussion:What about this stinking LLC?
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Discussion Forum Index --> Tax Questions --> What about this stinking LLC?
| 13 March 2006 | |
| I got a new client today...he is an LLC (one member) but I don't have a clue as to if he is a corporation LLC or his tax return will be filed as a Schedule C. On sunbiz.org, the Florida website for corporation inquiries, he is showing up as an LLC and has an FEIN so I am assuming he is a corporation...but could he still be just an individual? And how in the heck am I to know? I am filing an extension on his behalf for an 1120 and F1120 if he indeed is a corporation, but I don't want to file an extension if nothing is due before the 15th of April. Any suggestions on how to find out? This client is clueless about the whole thing; he did this for worker's comp exemption only....help please??? :) | |
Ratnasharma (talk|edits) said: | 13 March 2006 |
| A single member LLC files as a Sole proprietor unless it elects to file as a Corporation. If he has filed form 8832 to opt as a Corporation he needs to file 1120 otherwise he needs to flie Schedule C. So you have till 15th of April. | |
| 13 March 2006 | |
| I agree. If he filed to be a corp, you'd have some paperwork somewhere, and probably an S election as well. Since you don't assume that he's a sch. C...and rock from there. | |
| 13 March 2006 | |
| I figured as much but without documentation from him about whether he is a corporation or not, then can I safely assume he does not need to file an extension? This client is dyslexic and he is having a tough time even giving me the smallest bit of information. All I am basing this on is that to be worker's comp exempt in Florida, you need to be at least a 10% shareholder of a corporation. That is why so many people had to incorporate in Florida, for the worker's comp exemption, so I was assuming he was a corporation. Is there anyway to check with IRS to see if he filed 8832? | |
| 13 March 2006 | |
| Wow. Now, after hearing the FL rules, I lean the other way. I'd call the practioner's hotline, but wonder if they'll even talk to you without poa...
Make sure he's availabe by phone, call the hotline, conference him on there...and see what you can learn. If he's inc'd, ask about the S by the way... | |
| 13 March 2006 | |
| Thank you JR....I hate that so much is convoluted as it pertains to this sort of thing, but I am assuming to be exempt he had to be incorporated. Thanks again! | |
Mtmckeecpa (talk|edits) said: | 14 March 2006 |
| Sandysea,
I am a Florida CPA. I am betting your client is a SMLLC. After Fl passed the WC rule about being incorporated or a SMLLC most of my small specialty construction trades went to a SMLLC and most still are SMLLC. My understanding is that to be WC exempt you needed to be a shareholder OR a SMLLC. As JR1 said, you need a POA to get any info from the practioner's hotline. Client sounds like a challenge, will be more so if he did incorporate. Good luck. | |
| 14 March 2006 | |
| I believe he is a single member LLC. The w/c exemption site at myflorida.com states that a 10% member of an LLC can also be exempt, but is considered an employee and thus needs to have the exemption or will be required to have w/c insurance. I am trying my client today to see if he has any knowledge of the form 8832. Perhaps he can point me to the atty who set up his llc in the first place. Thank you MTM!! | |
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