All Forum Posts by: Steven Hamilton II

There will be significant tax consequences. We've done it with clients however I will warn you to get a second opinion. Prior to that firm opening they had zero tax experience. You'll want someone with actual tax experience and knowledge. Not half baked incorrect marketing tactics that mislead. 

Consider a meeting with @natalie Kolodij

@jake hottenrot

@Jessica Seppo,

Many people take the cost of an LLC and funnel it towards more insurance and an umbrella policy. Check for transfer costs before doing so.

Since you are in a non CM state, You are EACH considered a member. Your LLC should only be owned by one of you otherwise you will need to file a partnership tax return. It is more complex and has added requirements such as a formal set of books just like a corporation. That means no more spreadsheet.

Your Schedule C at the top will typically list both of you since you are filing a joint return. The IRS doesn't care which of you is on title. You and Him are filing one joint tax return. 

Thanks for all of the tags!

I'll reach out

 Thanks for the referral!

Your property management statement will suffice in an audit. They cannot and will not expect you to have the actual receipts that someone else paid on your behalf. 

I argue with the IRS for a living. 

@Natalie Kolodij can vouch for that. She hears my stories regularly. 

 So you partnered on a project with an equity stake which you knew was a risk. I'd review the promissory note and agreement to determine if you are guaranteed your contribution back.  @Jerry W. may have some input.

Honestly, I don't have time to deal with someone who is going to sit here and argue with me. I'm just going to go make some popcorn and continue reading this.

Context means everything in tax. FACTS MATTER.

This whole conversation I'm surprised that Linda entertained it that long. 

Natalie is entirely correct.

Brent,

There is a difference between legal services and tax planning. He can very much provide services to help tax plan and discuss entity formation. What entity you choose your LLC to be taxed as will typically have very little in regard to legal protection. I love to get on the phone with a clients attorney to discuss what the client is looking for and how we can make it balance for the clients goals.