All Forum Posts by: Account Closed

@Sam LLoyd Ok, that is coming together. You will want to speak to an Alaska attorney perhaps as you will want / need to follow the State rules closely. You might also check into whether this idea would work an an Alaska asset protection trust. 

@Michael Gayer Jr, I see your question as mixing two concepts. An LLC can be pass through (meaning the members are the responsible taxpayers, assuming they are all qualified taxpayers) or the LLC is responsible for its own taxes. A corporation can be pass through (an "S", meaning that the shareholders are the responsible taxpayer) or pay its own taxes (a "C", the Corp is the responsible taxpayer).

Here in WA one is not allowed to change an LLC to a corporation. You may close the LLC and start a corporation. The type of legal entity is a State issue. Whether that legal entity pays its won taxes or passes the income through to the owners, making them the responsible taxpayers, is a federal IRS issue.

@Sam LLoyd, I am not following you. You mentioned the LLC signing a lease with the owner of "the property", you state that the LLC will have an interest in "the property", and you state that "the property will still be owned in my name". I do nto see how all of those statements can be true at the same time.

@Art Maydan, places I have donated to will not determine a value of the items donated. They describe the items and leave it to me to provide the valuation (a discussion with my CPA). 

@Eric Lee, some of my clients have run into logistics issues with wanting to combine funds from a traditional IRA and a ROTH IRA into the same investment. Prohibited transactions can be created if not managed and reported correctly through the custodian. In addition to @Dmitriy Fomichenko's caution about the SoloK setup, you also need to look at the IRA account setup to see whether they allow an in-kind transfer out. Not all of them do. 

@Joshua Lane, I have used Legal Zoom in the past for a few issues. I now prefer to use Rocket Lawyer. 

Creating the LLC with the Sec of State office is relatively easy. Where I find these legal services add value is in the creation of documents such as the operating agreement, minutes of member meetings, etc.

No. A brother is not necessarily a disqualified person but parents are. (If my elementary school English teacher could see that sentence she would throw a fit. However, legally correct so I am going with it. Yikes, there's another one!) See this IRS FAQ for more info. 

@Linda Weygant, I meant that, at least here in WA, one way to create bullet proof liability protection is to segregate or split the rented space as an address / title and transfer that new titled real estate to the LLC.

@Mariah Kraatz-Rimkus, good idea to have a chat with @John Woodrich or whoever helps you with your return. Generally, if you didn't have a partnership or LLC etc during whatever time frame (such as 2016), then the IRS does not want you retroactively deciding that the tax would work better for you in a different manner and telling them that is what happened. If you created 2016 income as a "doing business as" (dba) or fictitious business name belonging to your SSN, then that is how they expect to see the income filed.

No, the IRS won't let you.