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Anne
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2366
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I own a Single member LLC, but I filed the individual tax return

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I own a Single member LLC, but I filed the individual tax return together with the LLC,I put LLC on Schedule C as business profit and loss, so DO I have nay personal liabilities for the LLC bankruptcy?

Anne :

Hi

Anne :

Thank you for your question

Anne :

Unless you have the bankruptcy through the court, there is nothing else you need to do other than converting any depreciable assets from business assets to personal assets

Customer:

I don't get it

Anne :

I want you to understand my answer, so please ask as many questions as you need to

Customer:

If I filed bankruptcy, it through the court or state?

Customer:

I filed bankruptcy for single member LLC, does it affect my person asset ? since I filed tax together.

Anne :

You asked if you had any personal liabilities for the LLC bankruptcy...........so I read that to mean that you may have officially filed bankruptcy through the courts...........is that correct?

Customer:

yes

Anne :

Did you claim any exemptions, such as homestead car, retirement money etc?

Customer:

yes, Does LLC affect personal asset through bankruptcy?

Anne :

It could

Anne :

 


A Sole Proprietorship is where you and the business are the same entity. The sole prop is taxed on Schedule C, but there is no separate business entity to provide liability protection for you if the business can't pay its bills or gets sued.

Anne :

You will want to check with your attorney and have him advise you on the best way to protect your assets under this type of business entity

Customer:

I thought the LLC is protect personal assets from business liabilities. Isn't right?

Anne :

The LLC offers LIMITED protection. The fact that you filed this on a Schedule C, and it was included as part of your personal tax return (as opposed to say an S Corp which has to file its own tax return) the LLC in the Schedule C forms offers the least amount of protection when it comes to your personal assets.

Anne :

That doesn't mean that things will get that far.

Customer:

okay thank you

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