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Multi State Llc

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    #1

    Multi State Llc

    I have been referred by a CPA friend to an exixting business that operates in several states. My friend is the accountant for one of the partners (NY) that operate another business. The LLC partner is in CA and he wants another accountant so as to keep an impartial accountant in this CA/NY LLC.

    The LLC operates out of two states, NY and CA. Each partner has an office and communicates and transfer files via the internet. Each partner travels to many states meeting with clients as well.

    They currently have an accountant(?) in OH that has each partner on W-2s for their state of residency ( NY and CA). I am not sure at this point where the LLC was formed.

    Based on the questions asked by one of the partners it appears that they will be a stickler for proper organizational setup and are asking my "expert" advice to do this right. Also to be their accountant going forward.

    To top this all off they are concerned with cost. Their LLC is very successful (music writers).

    I am inclined to go with 2 entities and no W-2s but maybe it is an overkill and a better solution may be out there. ANY SUGGESTION??????????????
    This post is for discussion purposes only and should be verified with other sources before actual use.

    Many times I post additional info on the post, Click on "message board" for updated content.
    Tags: None
    #2
    Questions

    I think this brings up more questions than answers at this point.
    Has the LLC elected to be taxed as a S-Corp? That would appear to be so if W-2s are being issued to each member. If they are actually partners, then W-2s are incorrect.
    Why break up an existing company? There are some disadvantages to the S-corp entity, but not as many as a partnership.(in MHO) .
    The company is completely set up and functioning? If so, you will need to see the agreement in order to know how to handle most of the tax issues.
    AJ, EA

    Comment

      #3
      No S Election was made, current accountant is wrong. My question deals with state issues and filings.
      This post is for discussion purposes only and should be verified with other sources before actual use.

      Many times I post additional info on the post, Click on "message board" for updated content.

      Comment

        #4
        Simple

        I would simply treat each office as a separate business, maintaining separate books for
        each, and then at year's end consolidate them for federal purposes, splitting federal profit per the operating agreement, and resulting states profits by same factors.
        ChEAr$,
        Harlan Lunsford, EA n LA

        Comment

          #5
          Thanks Harlan and AJ...................
          This post is for discussion purposes only and should be verified with other sources before actual use.

          Many times I post additional info on the post, Click on "message board" for updated content.

          Comment

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