New 3-member LLC that will file partnership that consist of 1 residential rental and will remain at 1 with about $20K of gross receipts. Dont ever expect gross receipts to ever get above $30K so no balance sheet is required but what if one or more members want to sell? Would the balance sheet come in handy? What else down the road could take place that would have wished LLC began with a balance sheet?
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To keep track of basis, determine gain/loss, etc when the day comes to buy/sell or liquidate or is a current year loss can be used.Originally posted by AZ-Tax View PostDave, EA -
tracking capital accounts and basis for the partners would be my big concernComment
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These things may also be required by the state (basis and capital) to keep with Partnership papersComment
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Whenever a balance sheet is not required, I don't provide it. I have a balance sheet in my file and the client's records for tracking asset/liablity transactions, for proofing purposes, and for tracking basis. Buf if the tax form says I don't have to furnish it, then I follow the instructions."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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