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Old 10-20-2004, 08:18 AM
richm23 richm23 is offline
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LLC now or after the first of the Year?

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.
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Old 10-20-2004, 11:12 AM
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parkwest parkwest is offline
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rich,
How many CPA's and tax lawyers do you think are on this forum?
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Old 10-20-2004, 12:36 PM
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MMLawn MMLawn is offline
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Quote:
Originally Posted by richm23
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.
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Old 10-21-2004, 12:21 AM
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HOOLIE HOOLIE is offline
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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.
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  #5  
Old 10-21-2004, 06:25 AM
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GardenofWeeden GardenofWeeden is offline
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http://www.irs.gov/businesses/small/...=98942,00.html

Go to the website from the IRS and get the free infor that is available. Can't answer your question myself.
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Old 10-21-2004, 06:29 AM
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GardenofWeeden GardenofWeeden is offline
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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.
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Old 10-21-2004, 11:59 PM
robin 2 robin 2 is offline
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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.
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  #8  
Old 10-22-2004, 09:50 PM
NCL NCL is offline
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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.
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