Partnership Llc Tax Organizer Form 1065: Fill & Download for Free

So first thing is LLC vs S Corp is apples vs oranges. They are different things. In fact if you set up an S Corp, it will most likely be an LLC.LLC-Legal form of entity that is formed according to state law. By default an LLC with one member would be a disregarded entity that reports taxes on Schedule C of Form 1040. By default a multi-member LLC would be taxed as a partnership which files a Form 1065. Either way all the tax attributes flow through to the individual owner(s) and tax is assessed to the individual owner(s). The owners are free to transfer money between themselves and the LLC as they wish. LLC can have just about any individual, corporation or other LLC/Partnership as an owner. Multi-member LLC’s can allocate profit, losses and capital among the various members in just about any way they want.An LLC can also elect to be taxed as a corporation either S Corp or C Corp.S Corp-S Corp is a federal tax designation that determines how your business entity is taxed. To elect to be taxed as an S Corp, you first have to have a state level legal entity that is either a Corporation or more commonly an LLC. S Corporation has some similarities to a partnership in that it files a separate tax return and all of the tax attributes flow through to the owners and taxable income is assessed to the individual owners. S corporations are required to pay their owners reasonable W2 wages for services provided to the business. Additionally any distributions of profits must be in the same ratio as the ownership of the S Corp. S Corp can only have owners that are US citizens or US tax residents. S Corp cannot have a corporation, partnership or non-resident alien as an owner.So when you ask for the major advantages of LLC vs S Corp, what you are really asking is advantages of LLC taxed as a sole proprietor/partnership vs LLC taxed as an S Corp. The advantages of sole proprietor/partnership is simplicity and flexibility. With the disadvantage being self employment tax. The advantages of S Corp are that with the right set of circumstances you can pay lower self employment tax, but there is added complexity and limitations on how you operate.My suggestion is don’t make the S election until you have a conversation with a US tax professional to be sure you understand the limitations and complexities.Post Script: Just to drive home that last point, I will share a real life example of a business owner who contacted me. Smart person, financial columnist, so knows about this S Corp topic, but did not contact me or any other CPA before going down the S Corp path. Year into it, finds out they missed something. What should have been a $50 tax ended up costing well over $600, just because they did not consult a CPA BEFORE they made the S Corp election.

The short answer - no.The long answer - there are other ways to accomplish your goals and some of it depends on how you're organized.LLCs can choose to file taxes as though they are a corporation (form 1120 or form 1120s) or a partnership (form 1065). However, if you are a single member LLC, you cannot use a form 1065 - you must file schedule C on your personal form 1040.If you've chosen to file as a corporation, then you can pay yourself a small(ish) salary and take the rest of your income as dividends/shareholder distributions. There are varying formulas that different CPAs recommend to their clients. I tend to lean a bit on the conservative side and I recommend that my clients take approximately 50% of their profits as salary and the balance as distributions. The salaries are subject to unemployment insurance, FICA taxes and worker's comp insurance calculations (although you can choose to exempt yourself from worker's comp), but the distributions are not. There is an added need within a corporate structure to have "reasonable" salary. So even if you do not follow a 50% split and choose something lower for salary, it still must be reasonable. For example, a doctor who has $300,000 of corporate income may not pay him/herself a salary of $30,000. The IRS will view that (rightfully) as an attempt to avoid payroll taxes and assess additional tax, penalties and interest accordingly.If you've chosen to file as partnership or if you are a single member LLC, then you just write yourself a check for whatever amount you choose. Paying a salary to an LLC member is not the proper way to be compensated. You simply take whatever you like out of the company as an equity distribution. ALL of your net profits are taxable for both parts of FICA (Self Employment Tax), but none of it is subject to unemployment insurance.Regardless of which tax structure you've chosen - partnership, sole proprietorship or corporate, it is never proper to pay yourself as a subcontractor. Amounts you pay yourself as a partnership or a sole proprietor are not deductible as an expense. For a corporation, only amounts paid to you as salary are deductible.

In California, if you wish to dissolve your LLC, you need to file Form LLC-3 Certificate of Dissolution of a Limited Liability Company and send this form the California Secretary of State.On the form, you need to provide the LLC’s name and LLC file number (which is on the Articles of Organization). Then you need to provide a reason for the dissolution of the LLC and sign and date. Then mail to Secretary of State, Business Entities, P.O. Box 944228, Sacramento, CA 94244-2280.Once you have done that, you need to file the final current year tax return (IRS Form 1065 if your LLC is classified as a partnership for tax purposes or IRS Form 1120 if your LLC is classified as a corporation for tax purposes). On the form, you need to check of “Final Return” box on the first page of the return, and write “final” across the top.If you have any other questions, you may read “Guide to Dissolve, Surrender, or Cancel, or Cancel a California Business Entity.”If you have any other questions, feel free to contact me [email protected] and I will be happy to assist you.