Returns for LLC tax preparation
LLC or a limited liability company has an exclusive status given from IRS. It’s the only type where owners or taxpayers reserve a right to choose how Internal Revenue Service (IRS) treats business for Federal Tax purposes. Therefore, the IRS Tax classification choices require preparation of different tax returns and bookkeeping under diverse tax rules, depending on the option made. Regardless of this great relaxation, however, the basic procedure for filing an LLC Tax Return is significantly same across classifications.
Also, you need to up the tax election of your LLC’s IRS. Every LLC or company must choose how it’ll be treated for the federal tax purposes. A single LLC member can opt to be taxed as the single corporation or a sole proprietor. The multi-member can prefer to be taxed as a corporation or partnership. An LLC taxed as single proprietorship does fill form schedule C. Therefore, a member record all the expenses and income on schedule c or form 1040. An LLC taxed as Partnership files a form number 1065, and those with corporation category files form number 1120. Moreover, your LLC must have a Confirmation Letter from IRS, which shows the choice you made for Tax Classification as the part of company records.
LLC tax preparation checklist
- Sales records
- Gross receipts from services or sales
- Allowances and returns
- Savings account interest (statement or 1099-INT)/ business checking
- Other income
Value of products sold (if valid)
- Total investment
- Inventory purchases
- Total dollar amount of beginning inventory
- Total dollar amounts of ending inventory
- Supplies and materials
- Items removed for individual use
Expenses while filling LLC tax preparation
First of all, the general expenses include advertising, phones (landline, cell phones or fax related to business), the internet and computer expenses. Moreover, the transportation expenses combine travel expenses, local transportation, business trip log, receipts for public transportation, tolls, and parking. Expenses, when you’re traveling away from home, include – taxi, tips, airfare, hotel, meal tips, internet connection and other.
Depreciation expenses include – cost & first date business use assets, records for personal use of assets, sales price & the disposition date of any sold assets, commissions paid to other parties (subcontractors), File form 1096 and 1099-MISC as necessary.
In addition, insurance expenses include business insurance, errors, and omissions, casualty loss insurance. Interest expenses include business loan interest, investment interest, and expense, mortgage interest, professional fees of consultants, accountants, and lawyers.
Furthermore, rent expenses combine vehicle lease expense on business-use vehicles, office space rent. The office supplies expense on paper, staples and other consumables. Moreover, if your office is in your home, expenses that matters include hours of use, square footage of the office space that is in use, total square footage of the home, utilities, rent paid, renter’s or homeowner’s insurance, the cost of home and more.
Contact Green Tree Tax
At Green Tree Tax we are more than happy to answer every question that you may have, no matter how complicated it is. We’re the leading Tax Preparation and Audit Service Provider in Houston, TX!
We have a team of highly experienced professionals offering quality services. So, look no further than Green Tree Tax if you’re into that kind of situation. Also, we offer exclusive Tax preparation service at a very reasonable price you can’t resist.