Professional LLC Tax Preparation & Filing

LLCs benefit from being pass-through taxation entities however they still require a tax return filing. Have a certified tax preparer file your LLC tax return to reduce the hassle of filing your taxes and avoid costly mistakes.

What are the benefits of professional tax preparation for my LLC?

Ease the burden

Some tax returns can be complicated. A small-business owner who itemizes his deductions has to complete and file IRS 1040, Schedule A, Schedule C and Schedule SE, among other forms.

Reduce Errors

While we are all human and not perfect, the chances of making a simple mistake on a return are reduced when you use a professional tax service.

Professional Tax Advice

The tax rules are complicated. Before you can use a deduction or credit, you must qualify for it. A tax professional can help find deductions and credits for which you qualify for, and can provide advice.

Avoid Adverse Consequences

When you sign the end of your tax return, you declare that the information is true and accurate to the best of your knowledge. Having a professional prepare your tax return adds a little safeguard to potential liability.

Limited Liability Company (LLC) Tax Preparation FAQs

  • How does a Single-member LLC Pays Income Taxes?
    A single member LLC is taxed as a sole proprietorship. That is, the information about the LLC’s income and expenses, and its net income is prepared using Schedule C. The net income from the Schedule C is brought over to Line 12 of the owner’s personal tax return (Form 1040 or other). A single-member LLC is considered a disregarded entity for income tax purposes. That is, the LLC and the owner are separate entities. This is the normal designation for a single-member LLC.
  • How does a Multiple-member LLC Pays Income Taxes
    An LLC which has more than one member typically pays income tax as a partnership. The partnership itself does not pay taxes directly to the IRS; the individual partners pay tax based on their share of ownership in the partnership. The partnership files an information return with the IRS on Form 1065. Then a Schedule K-1 is prepared for each partner, showing the share of the profit/loss of the partnership. The K-1 is filed with the partner’s individual return and the gain/loss is shown on the partner’s Form 1040.
  • Income Tax for LLC’s classified as Corporations or S Corporations
    An LLC may elect to be classified as a corporation or S corporation for tax purposes. Usually, this election is made because it is to the advantage of the business because of both lower taxes for high-income individuals. The election is submitted through IRS Form 8832 – Entity Classification Election. The LLC then pays income tax based on this new tax status, including state income tax. The LLC continues to operate as an LLC, following the company’s operating agreement. How the LLC members are taxed will change with this new tax designation.
  • How LLC’s Pay State Income Tax
    Each state has a different way of classifying LLC’s for state income tax purposes. Most states use the federal (IRS) classification, but they usually modify the tax rate or charge a flat rate.

File you business taxes with ease!

To learn more about working with a tax professional to file your business tax returns complete the form below