Discussion:Single Member LLC

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Discussion Forum Index --> Tax Questions --> Single Member LLC

JM9114 (talk|edits) said:

11 January 2007

I have a Single member LLC, but when first set up, it (erroneously???)filed a 1065, and listed both myself and my wife as partners. My wife's share showed all zeroes, but I would like to file correctly this year (2006). Would I have to "buy her out" of the non-existing partnership for some nominal fee? Which tax form should a SM LLC file, in order to pass all income/expenses to the owner (me)? For liability sake, I have to be the ONLY member of the LLC, since the LLC is acting as the 1% General partner of my LP. Thanks for any help.

JR1 (talk|edits) said:

January 11, 2007
If she indeed is not a partner, then just file a Sch. C. At some point you may get a query from IRS about the 1065 and just write back that it's a disregarded entity now and that'll be the end of it.

Lhhesscpa (talk|edits) said:

12 January 2007
Do you live in a community property state? -- Larry Hess, CPA, Albuquerque, NM - Talk to me

Deback (talk|edits) said:

January 12, 2007
I agree with JR, file Sch C, no buyout necessary, but you could also file a blank 1065 form and check the final box, just to be sure the IRS knows it's final. Then you wouldn't have to worry about hearing from the IRS in the future.

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