Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I'm filing my business taxes myself. I am a llc that elected…

Customer Question
I'm filing my business...

I'm filing my business taxes myself. I am a llc that elected to be taxed as a scorp for tax purposes. i have a question about retained earnings and how that works for tax purposes.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I'm filing my business taxes myself. I am a llc that elected to be taxed as a scorp for tax purposes. i have a question about retained earnings and how that works for tax purposes.

Accountant's Assistant: Is there anything else important you think the Accountant should know?

Just want to make sure that is the best structure for a 3 million dollar a year small business with 1 owner.

Submitted: 1 month ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
3/20/2018
Tax Professional: Barbara, Enrolled Agent replied 1 month ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,796
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

S corporations are pass through entities, which means any profit/loss is passed through to the shareholder (you). The S corporation files its own tax return (Form 1120S) and issues a K-1 to the shareholder. You then enter the K-1 information on your personal tax return.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Ask Your Own Tax Question
Customer reply replied 1 month ago
We have 800k income at the end of the year.
What would be the best structure for the company? Do you have any knowledge on being able to keep income in the company for future business capital.
Customer reply replied 1 month ago
Is the phone call charge in addition to the text charge?
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

You can keep retained earnings, but you will pay tax on all profit.

A phone call is a premium service and is an additional charge. Offers of phone calls are site generated. You can ignore it.

We can continue here.

Ask Your Own Tax Question
Customer reply replied 1 month ago
how do I pay the tax on what's left in the business bank account if everything is supposed to be passed through. It is confusing.
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

The results should appear on your 1120S which flow to the K-1.

You enter the information from the K-1 into your personal tax return.

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

Because the S corporation is a pass through entity, it files its own tax return, but does not pay any tax.

You pay the tax individually.

Ask Your Own Tax Question
Customer reply replied 1 month ago
Ok so just say there is 50k left in the bank account which shows on the balance sheet and then there is the shareholder amount on the K1. Was the shareholder amount supposed to show on the balance sheet also. If so, where?
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

Ending retained earnings appear in the second part of the balance sheet, under the equity heading.

Ask Your Own Tax Question
Customer reply replied 1 month ago
the K1 income should show there?
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

We are beyond the scope of your original question, and I am at a disadvantage because I cannot see what you're seeing.

As I mentioned, if you prepared the 1120S correctly, the net profit will flow through to the K-1.

Ask Your Own Tax Question
Customer reply replied 1 month ago
the K1 income should show as retained earnings??
Tax Professional: Barbara, Enrolled Agent replied 1 month ago

It will be included in income.

Ask Your Own Tax Question
Was this answer helpful?
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 5,796
5,796 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I have an LLC that was filed by a CPA under Form 1065
I have an LLC that was filed by a CPA under Form 1065 Partnership with one Schedule K-1. The ordinary business income is then put as a cash distribution into an Irrevocable Trust … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
87 satisfied customers
When a married couple files a joint income tax return, is
When a married couple files a joint income tax return, is there a way to determine how much tax to pay for the separate property income minus expenses, and how much for the community property income m… read more
abci168
abci168
Principal
27 satisfied customers
I just filed my Business Tax return electronically via Turbo
I just filed my Business Tax return electronically via Turbo Tax which showed a significant loss. I needed a K1 form to report my losses on my individual return. I did not receive a K1 form upon compl… read more
Barbara
Barbara
Enrolled Agent
5,796 satisfied customers
I need to file a tax form. Its a new LLC with no income, no
I need to file a tax form. Its a new LLC with no income, no business was generated. Is someone avaiable to help me with this now?… read more
Shan-Nel Simmons
Shan-Nel Simmons
Tax Professional/Owner
Master\u0027s Degree
43 satisfied customers
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Client Business return - Shareholder Loan or Capital
Client Business return - Shareholder Loan or Capital Contribution. Scorp return. Already had a shareholder loan to the company of $40K from prior year/prior preparer when company started. No loan pape… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have question if LLC needs to file form 8804/8805 if the
I have question if LLC needs to file form 8804/8805 if the gross income is zero … read more
Barbara
Barbara
Enrolled Agent
5,796 satisfied customers
I filed a personal tax return because I paid myself out of
I filed a personal tax return because I paid myself out of my small business LLC. I then tried to file a small business LLC sole proprietor tax return for my business and it was rejected. How do I cha… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Finally filing 2016 income tax returns. Filing as "married
Finally filing 2016 income tax returns. Filing as "married filing separate return". Did not live with spouse at all in 2016. What is she on my return: an exemption? a dependent? an alimony expense onl… read more
abci168
abci168
Principal
27 satisfied customers
I have an LLC formed in 2015. No income earned thus far. I
I have an LLC formed in 2015. No income earned thus far. I have a foreign investor who is now a partner (10% owner) who also needs an ITIN. I don't know how to file form 8804 / 8805 for the partner to… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
931 satisfied customers
I need help with business tax for my multi-member LLC. I
I need help with business tax for my multi-member LLC … read more
Carter McBride
Carter McBride
LLM
967 satisfied customers
A question about LLC tax return: I have a LLC that collected
A question about LLC tax return:I have a LLC that collected money from a few friends to invest in a startup company. Each person contributed $100k to invest in the startup plus $2k to cover the admini… read more
Carter McBride
Carter McBride
LLM
967 satisfied customers
OH State income tax - Schedule A - personal tax return line
OH State income tax - Schedule A - personal tax return line 31. 1. What is the difference between "survivorship benefits" and "pension continuation benefits"? * New client for me. * OH resident * Spou… read more
Barbara
Barbara
Enrolled Agent
5,796 satisfied customers
I have an LLC that is subchapter S. I file the 1120 form
hello. I have an LLC that is subchapter S. I file the 1120 form with K1 for federal. For 2017 there was not much activity for the business, but for 2018 it will be my main income source. I will be a 1… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,067 satisfied customers
I want to ask a question about Income tax return form 1040..
Hello I want to ask a question about Income tax return form 1040.. I want to fill form but My wife doesnt have any ssn number. She is housewife and she has no income. Which option should I choose from… read more
James Daloisio
James Daloisio
Attorney
Doctoral Degree
158 satisfied customers
I have a Cal LLC that hasn't filed tax returns or paid the
Hi there, I have a Cal LLC that hasn't filed tax returns or paid the $800 for several years. It is a personal training business with no real assets (we use a school facility). We want to walk away fro… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Penalty for late filing of partnership LLC tax return, not
Penalty for late filing of partnership LLC tax return, not eligible for Rev Proc 84-35 relief because one of the partners is a foriegner… read more
Barbara
Barbara
Enrolled Agent
5,796 satisfied customers
Is income from an LLC passed through to personal tax return
Is income from an LLC passed through to personal tax return considered earned income, enabling me to contribute to a traditional IRA?… read more
abci168
abci168
Principal
27 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x