All Forum Posts by: Mike Nelson

I believe I receive some bad advice from a small business owner I am acquainted with. I applied for my LLC to be taxed as an S corp for 2017, but I didn't not pay myself until December. I did not file any quarterlies (as I was told I did not need to) and I am finding this was all wrong. I reported my salary of 30k through the SSA.gov website and generated a W2 for myself. What is the best advice going forward and finishing my 1040 for the year? Can I just submit a 4th quarter 941 showing my salary and pay the necessary withholdings through the voucher? I understand there will be a penalty involved, but I don't know about the other quarters where I didn't make any money and did not pay myself at all. Did I just create a mess for myself? Any help is much appreciated. Thanks guys!

This is my first year as an LLC taxed as an S corp. I am a single member LLC and anticipate not paying myself until the end of the year. I use to report on Schedule C, but now will be using form 1120 to report the earnings/expenses of the business and my salary will end up on my 1040. Im wondering if anyone else does their own payroll or do you hire it out? Florida requires me to pay unemployment tax beings I know have a payroll for myself. The business income is sporadic so I will not pay myself a salary until the end of the year. Is this ok? Thanks!

I thought so, but this agent insisted we send contracts from SAGE's website wet signed. Im just going to finish the E signature process online and deliver him the EMD. I feel he is clueless on the new process.

So I was excited to here HUD was moving to an E signature type format for getting contracts accepted. Supposedly you are able to do everything by uploaded documentation online at the hud homestore and there is no need to run around like a chicken with you head cut off trying to get signatures from brokers, buyers, title companies space 20+ miles apart in some of the country's most dangerous traffic only to hope everyone is available in this time frame and overnight documentation within 2 business days. WELL it appears with Sage you are STILL required to do this ALONG with the new E signature process. What is the point of this?! The listing agent claims they still need we signature contract documentation 2 days after notice of bid acceptance. Is he wrong?! what is going no here..... thought the ridiculous over bureaucratic process was suppose to be simplified. Any hud agents have any insight? Thank you!

Not sure I understand where you are coming from.

Took care of it this morning. The person I spoke with immediately took care of it by waiving the penalty. Was very nice and helpful actually. If you have an LLC in your state and filed taxes as a sole proprietor through the LLC, are you required to file a return for the LLC as well? He did mention that the LLC (which was formed in Florida in 2013) did not file for 13', 14', or 15'. That is because I operated as a sole proprietor in those years and did my tax return through Tax Act online. I changed the LLC to be taxed as a S corp starting 2016 (correction to my previous statement). Im confused between the States and Federal requirements and classifications. He said I should issue a statement to the IRS stating I was still setting things up in these previous years. But I was always under the impression that I did not need to file a separate return for the LLC when I was being taxes as a sole proprietor through the LLC entity. Any thoughts? thanks for the responses guys, very helpful!

So I recieved a notice today for a $1560 fine for an LLC taxed as S corp that I started beginning of this year. I didnt file the extension, as the SCORP didnt make a dime ( im an idiot). I realized after it was too late I needed to file a return showing I made nothing. So now I have a late filing Penalty of $1560 on a business that didnt do anything or make any money! Is there anyway to get this fined waived? I read an article by Brandon Turner about a similar scenario, but is it really as simple as calling and explaining that? Seems the IRS wouldnt care about my screw up....

I found a great deal on a single family in an HOA community here in South Florida. Turns out the title company found the HOA is being sued for an accident on the common grounds of the HOA where a young boy was tragically killed from being hit by a car. Apparently, this HOA had NO INSURANCE! WOW! So all I know at this point is there is pending litigation to rule who is liable. I actually thought of purchasing this home for myself because the neighborhood and location are very desirable. At this point, is there any safe option for me to proceed with the home, possible protection form a home owners insurance policy If the HOA is sued and all the homeowners are found liable, even if I bought this home long after the incident (took place about 3 years ago)? The title company wants me to sign a hold harmless on the title policy for this issue. So if I do that, am I just putting my neck on the line for a possible $30 million dollar settlement split among all the homeowners? Sounds dramatic, but I need some options.

I have a question on a Florida property I am looking at.  The husband and wife own a townhome together.  They want to sell to me, and purchase another home at the same time.  The husband and wife are both on title for the townhome, but the current mortgage is ONLY in the Husbands name.  To qualify for a loan on the new home the Wife will buy separately, but needs to be dropped from the title of the current townhome.  Is there any special provision that allows a name to be dropped from title and not have to pay doc stamp taxes?  especially since she is not tied the current mortgage?

My Girlfriend was kind enough to lend me $50k for my last flip.  Going forward, in case something happens to me (death) what is the best way to secure here money?  Is a signed note good enough, or do we need to record it as a security instrument with the county every time?  I am obviously not up to speed on private lending.