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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1230
Experience:  16+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I need to know how to file taxes for me personally: (I havent

Resolved Question:

I need to know how to file taxes for me personally: (I haven't filed in a few years)

In 2008 I was employed as a W-2 and have a W-2. I received some unemployment wages as well. This should get a tax refund check.

In August 2008 I created an LLC named oneMYnd. In early 2009 I got an investor to loan me money. This money is what I paid myself with. The company never made any revenue, I defaulted on the loan. This officially came to a complete end in 2010/early 2011. I collected unemployment for some time in between as well. I am not sure how to account for my personal taxes, if I need to pay ANY taxes at all for these two years. We closed the books on oneMYnd in early 2011. (By books I mean we moved things out of oneMYnd's name or closed bank accounts etc, we didn’t have a set of books)

In late 2010 I started another LLC with a friend called M&M Asset Management. We made little to no money in 2010. In early 2011 I made $30k in this company.

In early 2011 I started another company with another friend called eBizMastery, LLC. We made some money in 2011.

I had no taxes taken out of any of the payments to me aside from that W-2 in 2008.

How exactly should I file my taxes for each year? Do I need to issue myself 1099's? Do I run everything under the LLC's?

I have statements, not receipts for most everything.
Submitted: 2 years ago.
Category: Tax
Expert:  Barbara replied 2 years ago.

bkb1956 :

Thank you for allowing me to be of service to you. As to your 2008 taxes, you should file them with the W-2 information as well as a Schedule C for the LLC that you formed in August of 2008. I'm assuming that you are the sole member of the LLC. If you are not, please let me know so I can give you additional information. Please keep in mind that even if you are entitled to a refund for 2008, you will not receive it from the IRS. You can only claim your refund for 3 years after the due date of the return, so 2011 would have been the last year to do so. As to 2009, 2010 and 2011, you will file your taxes as previously stated. However, for 2011 when you formed the M&M LLC, do you know if it was set up as a partnership, S corporation or C corporation. A tax return will have to be filed for that entity, and if a partnership or S corporation, the profit/loss will flow to you and your friend. If it is a C corporation, that corporation will file its own tax return and pay its own taxes. Please let me know if my answer is clear. If not, please reply and I will answer your questions until you are satisfied with the answer. Thank you.

Customer:

CRAP! I'm such an ass. I knew about the 3 year period it just never clicked. THat's what I get for procrastination. I assume that if I file still and IF i was to get a refund I won't, but I also won't owe anything and they won't try and bill me or anything correct?

Customer:

The schedule C that I am supposed to filing, if I have all my bank and credit card statements for the business should i legitimately be able to claim...more or less a complete loss which is what it was?

Customer:

And yes, I was the sole member of oneMYnd. I need to double check but I am pretty sure that the LLC's with my friends were C Corp Setup

Customer:

You said "As previously stated" for tax years 2009 2010 2011. I never created a W-2 or made an official payroll or anything. I never even created a 1099. So how exactly do I file those years?

bkb1956 :

You won't get a bill if you don't owe any taxes for 2008. Just get all your records together and file the return. As to 2009, file your return with a Schedule C for oneMynd, and if you are entitled to a refund, you will receive it. As to 2010, 2011 and presumably 2012, the M&M Asset Management LLC will need to file its corporate returns for those years and you will have to file your personal tax returns as well. Please double check to make sure that the LLC is a C corp rather than an S corp. The money that was paid to you can be considered draws, and I wouldn't advise trying to create W2s or 1099s because there are penalties involved for late filing of same. There will also be penalties for filing the corporate returns late as well. I think it would be worth your while to have a tax professional prepare your tax returns for 2010, 2011 and 2012. I believe you could prepare 2009 yourself. If you are unsure, I would be happy to assist you when you are ready. It has been my pleasure to assist you. Please rate my answer to you today. I look forward to hearing from you in the future.

Customer:

So to be clear, my 2009 is just a schedule C that I need to work through?

Customer:

And to further clarify, I need to file a schedule C for each year AND for each LLC (assuming the LLC filed their tax returns)

bkb1956 :

That is correct, but Schedule C is part of the 1040 which will also include your W2 income and unemployment. You will then take your standard deduction and one exemption for yourself to arrive at your TAXABLE income. That is the amount you pay taxes on. Please do not hesitate to contact me if you have any questions at all about the Schedule C.

Customer:

ok so I can use the 1040 I just happen to not have a W-2 from the companies...or are you saying when we do the corporate filings we will generate W-2's?

Customer:

sorry this is a bit perplexing to me

bkb1956 :

You do NOT file a Schedule C for 2010, 2011 and 2012 because the M&M Asset Management LLC is a corporate entity which must file its own taxes. You would then file your personal taxes based on the income you received from that LLC as well as any other income (unemployment), etc. I would venture to say that you will owe taxes for 2010, 2011 and 2012 because you had paid no taxes on the money you received. I would advise you include the money you received as draws from the corporation. It's not a problem for me that it's perplexing to you. I am here to help as much as I can.

Customer:

So when we are filing the payments from the LLC to me we will account for them as "draws"?

Customer:

What form will I file then for 10-12?

bkb1956 :

Yes, because no W2s or 1099 were ever issued. You will file your personal taxes on 1040.

Customer:

Oh I thought you needed a W2 in order to use the 1040

bkb1956 :

No. Any type of income is included on the 1040. It is not restricted to W2 income.

Customer:

Gotcha

Customer:

What are your rates?

bkb1956 :

I am in Florida and you are in Pennsylvania. I would definitely advise you to have your corporate taxes prepared in PA. Once that is done, I can help you with your personal taxes. Thanks again.

Customer:

thanks

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1230
Experience: 16+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Barbara
Barbara
Enrolled Agent, Paralegal
1162 Satisfied Customers
16+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.