All Forum Posts by: Melissa Mauro
Melissa Mauro has started 1 posts and replied 5 times.
Post: Self filing taxes for new LLCs
- Posts 5
- Votes 1
Thanks Basit. Yes it’s single member LLCs and no income, just startup expenses.
Post: Self filing taxes for new LLCs
- Posts 5
- Votes 1
Quote from @Bruce D. Kowal:
NJ LLC's have annual filing requirements just to maintain LLC status. This is regardless of income taxes. [I am nearby in Bayonne.]
Thanks Bruce. Yes I’m aware of the annual report filing and I stay on top of those.
Post: Self filing taxes for new LLCs
- Posts 5
- Votes 1
Quote from @Sean O'Keefe:
I think the crickets here on your post speak for themselves.
1.) Most REIs don't self-file their LLCs 2.) For LLCs that are required to file and don't -> IRS failure to file/late filing penalties are $70 per member per month. This adds up quickly. 3.) CPAs generally charge more to amend a return especially if it's a mess so self-filing and having a CPA clean up your mess later, if you get it wrong, won't necessarily be cheaper.
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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.
Post: Self filing taxes for new LLCs
- Posts 5
- Votes 1
I would love to hear from those out there who self filed their taxes for their new REI LLCs in the first year without any investment properties/deals yet. I've heard many say not to bother hiring an accountant/large firm for tax prep or planning until you have some investment properties or completed some deals. I set up my entities mid 2023 -a holding company in WY and an operating LLC in NJ and have only had start up expenses so far and no income.
What are the consequences for not filing or how do I go about filing it myself this year? It sounds like it should be a simple process since there was no income. Also, for 2024 when I go to file, at that point I could work with a CPA or tax prof and amend the prior return if it wasn’t done right, correct?
Basically just wondering if it’s really the end of the world if I don’t file, file late or file improperly for the first start up year. I’m probably stressing over nothing when I should be focused on getting my deals closed. ;)
Post: Are CPA’s necessary before starting out? If not, at what point is a CPA necessary?
- Posts 5
- Votes 1
Quote from @David M.:
@AnnMarie Bacchus From one of your comments about being sold REI pkg, perhaps part of the issue is your search for "REI cpa." Personally, one doesn't need a "REI" specific cpa. Honestly, I don't think people always need a CPA since that certification is for public accounting --- this isn't public accounting and GAAP.
But, you need a to find a competent accountant. Like most professions, its as "practice." In my experience, the smaller accountants don't always have the experience, nor the infrastructure. When it came time for myself, I just went to a large firm for assistance.
Hope that helps. Good luck.
Which firm did you use? I’m in NJ too and looking for an REI accountant since mine isn’t comfortable dealing with RE. I’m starting out too and like AnneMarie, I don’t have properties or even income into my business yet, only expenses but still need to file so I wanted to make sure it was done right.