Business Formation
The most frequently asked tax questions related to Business Formation
How does a Single Member LLC file its tax return?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
A single member LLC files as a disregarded entity on a Schedule C. It does not file as a Form 1065 Partnership tax return.
Is there a limit on the number of owners a LLC has?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
No. There is no limit on the number of owners (members) for a LLC or a Limited partnership or a C Corporation. There are limits for S Corporations and Sole Proprietorships.
Are there citizen requirements for LLC's?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
No. There are no citizen requirements for LLC's, Limited partnerships, Sole Proprietorships or S Corporations. There are citizen requirements for S Corporations.
Are the LLC owners liability limited?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
Yes. LLC's have similar liability limits as do C or S Corporations.
Sole Proprietorships and Limited Partnerships are personally liable for business liabilities.
Can a LLC be owned by another business?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
Yes, An LLC and a C Corporation may be owned by another business instead of individuals. S Corporations, Limited parnerships and Sole Proprietorships cannot be owned by other businesses.
S Corporation - include a nonresident alien?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
None of the shareholders can be nonresident aliens.
How many shareholders can an S Corporation include?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
An S corporation can have no more than 75 shareholders. None of the shareholders can be nonresident aliens.
Sole Proprietorship - Schedule C
Do I have to carryback my current years business loss?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
No. you may make an election to forego the carryback. You must attach a statement claiming to forego the carryback and file it with the current years tax return by the due date plus extensions.
Sole Proprietorship - Schedule C
Carryback current years business loss?
Asked Tuesday, January 03, 2012 by an anonymous userCPA Answer:
You can carryback your current years loss 2 years then forward 20 years.
A 3 year carryback is available for a NOL attributable to casualty losses or a presidential declared disaster.
A farming NOL can be carried back 5 years.
A 3 year carryback is available for a NOL attributable to casualty losses or a presidential declared disaster.
A farming NOL can be carried back 5 years.