Capital Stock for LLCs

[Snaggletooth]

Of course, there isn't any stock to begin with. However, if a 1120, 1120S, or 1065 is chosen to report operations, there will be a line item on the balance sheet.

Is it prudent to put any value on the line item for Capital Stock if the entity is an LLC?
Even though there may be no shares of stock, would it be a good idea anyway?

[ChEAr$]

Of course, there isn't any stock to begin with. However, if a 1120, 1120S, or 1065 is chosen to report operations, there will be a line item on the balance sheet.

Is it prudent to put any value on the line item for Capital Stock if the entity is an LLC?
Even though there may be no shares of stock, would it be a good idea anyway?

You answered your own question. if there is no capital stock, no entry on that line.

Are you back in town yet?

[Snaggletooth]

Benefit Packages

Does an LLC qualify for §125 benefits/cafeteria plans, etc.?

These things are normally limited to corporations, but would an LLC qualify if they choose to file as a corporation?

[ChEAr$]

Does an LLC qualify for §125 benefits/cafeteria plans, etc.?

These things are normally limited to corporations, but would an LLC qualify if they choose to file as a corporation?

Yes. (words inserted here to make reply long enough so that the TaxBook board will accept it without flipping it back to me saying the reply is too short!)

[S T]

I believe most entities can participate in Sect 125 plans - it would be the owners of the sole proprietor, partner or LLC members or .2% S Corp from participating - however those employers/entities can set up for the Employees

Who can participate in a Section 125 Premium Only Plan?
Employees of:

•Regular corporations
•S corporations
•Limited liability companies (LLC’s)
•Partnerships
•Sole proprietors
•Professional corporations
•Not-for-profits
The Code prohibits a sole proprietor, partner members of an LLC (in most cases), or individuals owning more than 2% of an S corporation from participating in the Section 125 POP, owners may still benefit from the savings on payroll taxes by sponsoring the plan for their employees.

Sandy