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I am a partner in 8 different businesses. I get income after

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I am a partner in...
I am a partner in 8 different businesses. I get income after profits are determined each month. At the end of the year, I get K-1s on each business. The businesses are each their own entities-LLCs mostly. The businesses are located in each state, and I travel about two weeks out of every month to manage the businesses. I do not get reimbursed for the travel through the corporations. What is the best arrangement for me, tax-wise? Should I file a personal return and deduct my business expenses? Or should I have a separate corporation that serves as a pass-through; that is, which receives the profits from the corporations, and pays me?
Submitted: 7 years ago.Category: Tax
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2/1/2010
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago
Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
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Customer,

 

If you deduct the business expenses on your personal return, you will probably be subject to limitations on you Schedule A. However, if you can set-up a company that has a business purpose (other than just deducting your business expenses) you would be able to deduct expenses such as these.

 

You could have a company such as an advisory company. You would need to find a way to book income to offset the expenses. A company shouldn't continue to loose money year after year or it may start looking suspect. Would the LLC's consider paying you an outright consulting fee that diminishes your K-1 returns?

 

Please let me know if you have any further questions. My firm services many clients that have similar circumstances such as yours.

 

Regards,

 

Chad

Chad Oberg
Chad Oberg, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 174
Experience: 10 + years of accounting and tax experience, financial statements and business planning
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Customer reply replied 7 years ago
Are you located in Texas? I reside in Texas, but some of my businesses are elsewhere, such as NM, Nebraska, and Arkansas. Offsetting the K1 income with a consulting fee shouldnt be a problem.

I also own another business-a franchise-without any partners, and it is set up as an LLC.

I'd be interested in seeing how perhaps your group and I might be able to do business.

Thanks

Paul
Tax Professional: Chad Oberg, Certified Public Accountant (CPA) replied 7 years ago

Paul,

 

My office is located in Southern California. We have clients throughout the United States. It would be great to speak with you. My contact information is as follows:

 

(NNN) NNN-NNNN/p>

[email protected]

 

Regards,

 

Chad Oberg

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