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    3 Replies Latest reply on Nov 2, 2009 5:04 PM by bassfcsllc

    Tax filing for Sole Proprietor and LLC in Oregon

    chickenfarmer Newbie

      I have been running a custom furniture business for a couple of years now as a sole proprietor. We (my wife and I ) formed an LLC this year for our small farm. We are each a 50% owner.
      I have two questions. First, will we have to file 2 separate tax returns, one personal that includes the sole proprietorship and one for the LLC? We started the LLC in the middle of the year and had farm expenses incurred during the time this year before the LLC was formed.
      Second, how can I envelope the custom furniture business into the farm LLC? As a farm we raise horses, grass hay, poultry (for meat and eggs), and I'm preparing a market garden for next spring. We are also planning on offering other things such as firewood, farm visits, and possibly baked goods. Can all of these things (including the furniture) be blanketed under the Farm LLC?


      Thank you for your advice.
        • Re: Tax filing for Sole Proprietor and LLC in Oregon
          LUCKIEST Guide
          Tax filing for Sole Proprietor , Welcome

          Suggestions, First go to Members page and share some info.

          Then get yourself an Accountant. Everybody in business should have an accountant, a lawyer and an insurance agent.
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          • Re: Tax filing for Sole Proprietor and LLC in Oregon
            bm911tax Adventurer

            How did you register your LLC for tax filing purposes? Did you register as partnership (2 or more individuals) or as a disregarded entity? The answer will answer your questions; if you registered your LLC as partnership then yes you will need to file a separate tax return form 1065. If you registered your LLC as disregarded entity then NO you can file your personal and business taxes on your personal return form 1040, just the business activity on Schedule C or F depending on what you are doing.


            The answer two the 2nd questions; A company can do several different lines of activities but within the scope of its business. For example: A store can sell only electric items, but it can spread and have different depts.; electric, plumbing, etc. So it depends, if you feel that all those activities your are describing can be part of your overall business structure then yes you can utilize it under one LLC.


            And lastly, I strongly recommend get some professional help from a tax advisor. Taxes are complex and it will cost you much more $$$ if you don't do it write, and based on your questions, it seems you really need an accountant.


            Good luck.



            • Re: Tax filing for Sole Proprietor and LLC in Oregon
              bassfcsllc Newbie
              BM911tax is right all the way. I'll add that if you set up the books with a separate line item for expenses and income from the furniture it will make it alot easier.