A Limited Liability Company, also known as an LLC, is a hybrid business entity, combining aspects of a sole proprietorship with aspects of a company.
The advantage to this business structure is the removal of the “double taxation” that occurs when a company pays taxes on its earnings, and then distributes its earnings to its owners and employees, who also pay taxes on their earnings.

In an LLC, the entity itself pays no corporate income taxes; instead, all profits are “passed-through” directly to the owners, and are then taxed only once.

The IRS treats most LLCs as a sole proprietorship or partnership, which means that the company’s income or losses are generally reported separately by the owners of the business on their individual income tax returns.

Tax-prep software or large tax-prep retail chains may not be able to offer the personalized LLC income tax services that you require.

Whatever the structure of your business, we can assist with your LLC Income Tax preparation and filing requirements.

Single Member LLC

A single member LLC is treated as a sole proprietorship, and its income and tax obligations are reported on the owner’s individual income tax return. We can prepare your return, making sure to take every business deduction to which you are entitled as a business owner. We prepare form 1040, as well as Schedule C for Business Income and Expenses, and Schedule SE for Self-Employment Income (payroll taxes).  We’ll help you navigate the differences in federal and state requirements for each single member LLC.

Multiple Member LLC

Multiple member LLCs are treated as partnerships by the IRS. We help prepare Schedule K-1s showing each partner’s share of the LLC’s income or loss, and we can then transfer the information from the K-1 to the owners’ individual income tax returns. We also prepare the Form 1065, the Partnership’s informational income tax return, which is submitted to the IRS.

LLCs with Employees

If your LLC employs people other than the owners, we can help you prepare all necessary payroll tax paperwork in a timely manner. We can calculate the tax deposits for your payroll periods, or for returns that are filed quarterly or annually. We can also prepare your submissions to reduce your administrative time.

At the end of the fiscal year, we prepare 1099s or W-2s for your contractors or employees, depending on the nature of their employment.

Tax Planning

Estimating your future tax obligations is an important part of the tax preparation process for both individual and business clients. We can devise tax strategies that make the most of new and existing tax legislation, in order to ensure that your obligation is as low as it can legally be.

Services for Single Member LLCs

We can provide analysis and advice for home office deductions, equipment depreciation, pension, 401K and other services.

IRS Audit Representation

Before we submit your returns, we will determine and address any potential situations which may lead to a closer examination by the IRS.

We have represented both individuals and businesses in the case of audits, and we understand your rights. We are fully prepared to provide the protection you deserve. If paperwork is missing, we will assist you in gathering the necessary documents. We will represent you so that you need never face anyone alone, and we will do everything we can to ensure you emerge successfully from your audit experience.

“I unequivocally recommend Wallace & Associates to anyone in need of such high quality services.”

Anthony J. Taddey
Managing Director, Lancaster Pollard & Co.
Santa Monica, CA