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I am slightly confused as to how converting from a single

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member llc to a multi...
I am slightly confused as to how converting from a single member llc to a multi member (partnership) llc will affect my taxes it all seems very vague, would you possibly be able to clarify how this works?
Submitted: 2 years ago.Category: Tax
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Customer reply replied 2 years ago
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Tax Professional: Richard, Tax Attorney replied 2 years ago
Richard
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Hi there. I'll be happy to discuss this with you by phone. If you submit a request, I will accept it and I will then call you. I look forward to helping you!

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago
Lane
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Hi

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

I hold J.D. (Duris Doctorate -a Doctoral degree in the law), MBA (Finance & Tax specialization), a BBA from Mercer University's Stetson School of Business & Economics, as well as CFP and CRPS (Chartered Retirement Plans Specialist) designations - I can help

...

Actually there may be less actual NET change than you think .... You still considered a self employed individual

...

IRS just (by adding another owner/member requirres that you now file a partnership tax return (UNLESS you elect one of the corporate forms of taxation)

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

So, rather than filing a schedule C with your return, as you have been (where the profit flows to your 1040 on line 12 - business income or loss) the 1065 will generate a schedule K-1 that (based on ownership or partnership agreement) assign a proportion of the income or loss to you and the other owners ... then THAT k-1 is used to prepare your taxes (flows from your K-1, to schedule E, to line 17 of your return

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Then that income (or loss) becomes part of your Adjusted Gross income, just as the income flowing from the schedule C did when you were a single member

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

And finally, becasue you are still considered "self employed" you will still have the schedule SE, just as you didi as a single member, where you pay self employment tax (both the employer and employee halves of social security and Medicare)

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

That's a pretty good foundation

...

Let me know what questions you have from here

...

Lane

..

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Tax Professional: Lane, JD, CFP, MBA, CRPS replied 2 years ago

Hi,

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I'm just checking back in to see how things are going.

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Did my answer help?

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Please let me know if you need more here

And if not, I'd appreciate a positive rating (using the stars on your screen). That's the only way JustAnswer will credit me with a portion of what you've paid them.

Thank you,

Lane

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