LLCs Can Function as Pass-Through Entities
The LLC, or Series LLC, has the easiest tax returns for a single member. It’s known as a pass through-entity. This means that all of the income from your company’s able to be recorded on your personal income tax return. You don’t have to pay thousands of dollars to CPA take people to file that business tax return that you would have to do otherwise.
This is also true if it’s you and your spouse filing jointly for your income taxes. Some states they require multiple members, so this can be a huge leg up when it comes time for ease of use of tax preparation.
Let’s take for example that you both have you and a partner inside of the LLC. You’re going to have to file what’s known as a partnership return. A partnership return is a separate return for the business itself. You’re going to need somebody to help you repair that return, to which I suggest you hire a good CPA who is also a real estate investor to be able to help you prepare the return.
Also note that an LLC is able to be taxed as a corporation Some instances it can make sense in terms for your operating company to have that LLC taxed as an s corporation. So keep that in mind.
My name is Scott Smith. I’m an asset protection attorney, a real estate investor, and I want to help you. Click here to schedule a consultation today!