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Member
 
Group: Forum Members
Last Login: 7/30/2009 8:58:45 AM
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my experience is that several of our married clients who have LLCs want them to be two member so that the LLC files its own returns (to keep details off of the personal returns).
in the past I have shown the owners as husband and wife as trustees- and use two k-1s. i have never had this questioned by any taxing authority (no surprise there, since they do not understand trusts of any type!).
but, i just had an attorney tell me that this is not correct- his solution was to make .10% as joint tenancy and the rest as the living trust (so that there would be two partners).
guess i do not see the downside- worst case, can not imagine IRS getting upset that we filed a return that we did not need to file !!
is this attorney being too picky?
anyone have other solutions?
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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Power Member
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Last Login: 2 days ago @ 6:44:11 PM
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| Most of my LLC clients with a living trust as the only member, file a CA return only. I do have one where there is no trust and we prepare Form 1065 with a K-1 for each spouse. I acquired an LLC from another firm. They prepared Form 1065 showing the husband as a 100% owner and the wife as a 0% owner to indicate that the LLC was separate property. I don't see how there could be a problem in any case. Attorneys send bills when they think the CPA has prepared a return incorrectly. Sorry - I'm being cynical today.
Mary Kay Foss
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Power Member
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Last Login: 11/12/2009 10:40:29 AM
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Mike, out of curiosity, do your clients want the membership interests to be separate property?
Does the attorney know about Rev. Proc. 2002-69?
John Jacobson
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Member
Group: Forum Members
Last Login: 7/30/2009 8:58:45 AM
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nope, still community property- in a living trust.
thx for the cite. i will forward it on to the attorney-
John Jacobson (7/24/2009)
Mike, out of curiosity, do your clients want the membership interests to be separate property?
Does the attorney know about Rev. Proc. 2002-69?
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matters addressed herein. |
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