asked
I am forming a new LLC partnership with 6 members. Member A is contributing intellectual property (IP) valued at $125k and will work full-time without salary for 6 months. Member B will also work full-time without salary for 6 months. Member C will invest 160 hours per month for 6 months and be paid from future profits before other members. Members D, E, and F will invest 50 hours per month for 6 months without special repayment. Should the starting capital accounts be $0? Should A's capital account match the FMV of the contributed IP? Should C's upfront time investment be booked as a loan or a special allocation of income? Will any members have tax liability at the formation of the LLC or before receiving income from the LLC?
June 8th, 2023
Why would an LLC elect to be taxed as a corporation, and if the owners of 13 corporations change their business formation to LLCs, would they still need to file 13 separate tax returns or would each owner just file one tax return with the profits of all the LLCs? The goal is to protect responsible members from the tax actions of irresponsible members.
March 28th, 2024
I’m making tax payments every month that are taken out of my account. I need paperwork stating how much has been paid and the balance to send to a mortgage company. How can I find that?
May 12th, 2024
If I live and work in California, but work for a company based in New York and pay New York State taxes, can I collect unemployment in California if I was recently terminated?
September 3rd, 2023
We are considering asking high school students to record video sporting events for our company, but they would not be employees. If we pay them cash, we assume we would have to send them a 1099 form for amounts over $600. However, if we give them prizes or gifts instead of cash, do these also need to be reported and taxed?
August 8th, 2023
Why does California's tax return include a line for deducting state income or sales tax if California does not allow such deductions, and how should taxpayers handle this line on their CA return?
September 10th, 2023