Intuit Community Champion

Question

Just a Single Member LLC, right

Forum|Forum|3 years ago
February 28, 2023
5 replies
30 views

new one.. guy calls me.. can you get me in.. says just a couple of w-2s and he owns a single member LLC... son of good client so i tried to accomodate him. comes in and then he tells me the SMLLC is treated as an S Corp.. i ask him what his sales were last year.. about $ 6,000.. just a very part time gig he does.. asked him who told him to go S Corp route.. oh my old CPA firm but they are very expensive he tells me. bad use of an S Corp in this case.

ProSeries Professional

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IRonMaN

Level 15

The old firm probably wanted to sell him some payroll services. They need to keep money rolling in after April 15th 😉

Slava Ukraini!

dkh

Level 15

Old CPA firm helping him avoid SS/Medicare tax on profits. No wages from Scorp I'm sure.

qbteachmt

Level 15

"but they are very expensive he tells me"

"the SMLLC is treated as an S Corp"

Oh, this story is bound to get much worse.

Don't yell at us; we're volunteers

PATAX

Level 12

Jim do you believe everything new clients tell you about their former CPA? I'm sure you've heard of jumpers haven't you? The type of client that jumps around from tax preparer to tax preparer. I wonder why they jump around? I wonder why some clients get fired? I guess they're all Lily clean huh?

Skylane

Intuit Community Champion

Lotsa ugly preparers…. Lotsa ugly clients….lotsa times situations just change…. Look at the paperwork and make your own determination…. Could be original intent was to start a business that would grow and grow (and didn’t work out that way)…. Or could be a preparer who saves client 300 in taxes for much bigger fee…. Or could be something else…..

If at first you don’t succeed…..find a workaround

PATAX

Level 12

Skyline that is right. Original intent and circumstances change over time. I picked up a client years ago. High income earner. But he had an LLC with no income. I had to file PA corporate tax return each year since there was a Pennsylvania capital stock tax at that time. He had that LLC with no income because in the past he had a different intent and there were different circumstances.

ljr

Level 9

Did you ask him what they were going to charge? Good to find out what he thinks expensive is before you invest time into this. Wonder if it is same or lower than your fees? Charge accordingly it is March or just tell him the word extension.

PATAX

Level 12

C.A.C.=P.I.A.

dkh

Level 15

@PATAX I don't know what C.A.C. stands for but I understand the P.I.A. So I agree with you !!

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