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Ask Chad CFP ® Your Own Question
Chad CFP ®
Category: Tax
Satisfied Customers: 627
Experience:  Managing Director at Caros Group
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I would like to ask you a few questions. I created an LLC

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Hello, I would like to ask you a few questions.I created an LLC company in the state of Florida in August of 2014, in which I was the only member. In September of 2015, I applied for a FEIN. When I did my 2015 tax return, I included the FEIN on that return. This month, August of 2017, I added a member to the company (my wife). This is a non-operating company (investments).My questions are the following:- Is it necessary to submit Form 8832 to be able to file taxes as a partnership?
- Am I at risk of any penalties? If so, what can I do?
- Should I submit the form immediately or do I have to wait some time to do it?Thank you

Hello my name is ***** ***** I will be able to answer your question regarding business formation for you and your wife.

If you would like the LLC to be a partnership then you would be classified by default for tax paying purposes as a partnership if you did not file form 8832

You should create a partnership agreement, which is a written document that details your partnership.

You can modify the partnership agreement during the tax year and even after the tax year, but any modifications need to be completed before your tax filing date of the 15 day of the third month (march) of the year.

If you have any further questions please let me know.

If you are satisfied with the answer, please rate and accept my answer so I may close out the question.

Thank you very much!

You are not at risk for any penalties for not filing the 8832 if you intend on staying a partnership

Customer: replied 2 months ago.
Hello Chad,Thanks for answering my questions. In fact, at the time of adding my wife as a member of the LLC, we created an "Operating Agreement" through a lawyer.
By default, the classification I initially received from the IRS was: "Single Member LLC Disregarded Entity (sole proprietorship for income tax purposes)".
For that reason, I was unsure if I needed to submit form 8832 or not.

I understand. Since you now have a partner, you would be by default a partnership. Just ensure to pay any taxes due in a timely manner because the due date is in March and not April

You could complete the 8832 and select partnership just for reassurance since you added your wife. No harm in completing the form.

Chad CFP ® and other Tax Specialists are ready to help you
Customer: replied 2 months ago.
Thank you very much...

Thank you for the rating. If you do have any further questions please let me know.