Accountable Reimbursement Plan / What for SMLLC?

[bbrownatl]

I know that “Accountable Reimbursement Plans” are necessary and used for S-Corps. However, can you clarify what is needed for just a regular single member LLC? Not sure I’m clear as to what the difference would be if the individual in the SMLLC just submits expense reports for such matters business expenses incurred on say a person credit card for a client meal or office supplies. Any clarification for the proper procedures for a SMLLC is much appreciated.

[Roland Slugg]

Since a SMLLC is a disregarded entity for tax purposes, the travel expense substantiation rules are the same as for a Schedule C filer.

[buzzardbreath]

What Have I missed here?

When I read something like this, I think there is a chunk of knowledge missing from my repertoire. My expertise seems to leap from chunk to chunk.

When it comes to an "accountable plan", since when does the form of entity make a difference?

[Gretel]

Maybe it should be clarified if the question is about the owner of the SMLLC or employees.

[Burke]

That would help. All references in IRS pubs regarding accountable plans, refer to "employees." Thus, a single-member owner of an LLC which is not treated as a corporation, is not an employee and would not have to submit documentation for reimbursement under an accountable plan. Any employee would. Of course, he would have to HAVE documentation to substantiate the deduction of such expenses on the Schedule C. He could certainly pay for these expenses out of the business account if he wished.