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richm23
10-20-2004, 08:18 AM
I am going to change from a sole Proprietor to a LLC. Should I do it now or after the first of the year for tax purposes. WHich will be easier for my accountant. If I do it now will I have to pay taxes on money I earned earlier in the year as a sole Proprietor and from now till the end of the year anything as a LLC. Thanks for the help.

parkwest
10-20-2004, 11:12 AM
rich,
How many CPA's and tax lawyers do you think are on this forum?

MMLawn
10-20-2004, 12:36 PM
If I do it now will I have to pay taxes on money I earned earlier in the year as a sole Proprietor and from now till the end of the year anything as a LLC. Thanks for the help.


You should have already paid the personal taxes on the money you have earned under the SP has that is payable each Quarter. So that was due in April, July, and Oct on that part. Yes, if you switch now you wil finish the year with the LLC filing. Long and simple WAIT esp this late in the year.

HOOLIE
10-21-2004, 12:21 AM
This is one of those questions where I don't understand why you don't just ask your accountant. That's why he makes the big bucks.

GardenofWeeden
10-21-2004, 06:25 AM
http://www.irs.gov/businesses/small/content/0,,id=98942,00.html

Go to the website from the IRS and get the free infor that is available. Can't answer your question myself.

GardenofWeeden
10-21-2004, 06:29 AM
http://www.irs.gov/pub/irs-pdf/p3402.pdf

Tax Info on LLC's

There is info in the PDF file that answers your questions. There are pitfalls to do what you are asking. However...I STILL do not admit I know the answer your question.

robin 2
10-21-2004, 11:59 PM
Make the LLC effective Jan. 1 of 2005. The risk of causing damage this time of year is less since the mowing season is almost over, so just wait. I am doing the same thing.

NCL
10-22-2004, 09:50 PM
My accountant suggested to start the process last week in NOV. to get it ready for the first of the year so not to complicate your tax returns, you would have to file two seperate returns if you did it before the year is out. It takes 3 to 4 weeks to process all the changes.