Have a Tax Question? Ask a Tax Expert
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Do you own this LLC or are you a part owner of the LLC?
I own 5% of the LLC through a Private Trust
okay. The expenses are for services rendered as a manager?
yes, because the other owners do not reside in the state of Arizona and I act as the point of contact manage their projects.
Then you should be getting a W-2 and the company should be remitting payroll taxes for you
ok, since they have been writing checks with my name and they total $25,000 and I cashed the checks, how do I go about catching up and create W2 now?
They would go back and file payroll tax returns and then remit the payroll taxes due
Then you would reimburse them for the amount that should have been withheld from your check
They will need to file a 940, 941, W-2 and W-3
simple enough, how do I proceed with filing for my own personal tax return at this point?
You will claim the amount as income. You need to wait for them to issue your W-2
so you will file an extension for now
Pay your estimated tax due with the extension and you will be fine.
as income under 1099?
No, you wait until you get a W-2 to file your return
Just calculate your estimated tax due on the $25,000 and remit that to the IRS with your extension
YOu can use a tool such as the TaxCaster to make the estimate
can I file for an extension as this point?
Yes, you can.
It's form 4868
Is there anything else I can help you with today?
yes, what is the best way to pay me as an executive director from this LLC?
What do you mean by that?
You would be paid using a W-2. Whether they pay your bills or give you a salary you would be taxed on that as wages
should the LLC have me as payroll for 2013 or is there a better way to pay a partial owner acting as director of the LLC collect money out of the business for services?
Yes, they should have you on payroll
but that doesn't mean that they can't pay your bills
is there a payroll company on line that services companies with one employee? PayChex never returned my call!
Have you tried ADP?
Also if it's a small business a local CPA firm should be able to do it
I would have an independent bookkeeper in your area do it.
You will have an easier time getting a hold of them. Paychex and ADP are better for large businesses.
I want to do it on line, I will try ADP.
that is it. Thank you for all your help. If you look like the photo on my screen, I would like to respectfully XXXXX XXXXX on your looks. I think I was fortunate enough to get the best looing virtualCPA! You have yourself a great rest of the day.
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and the brightest and smartest!
so I hope.
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