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    6 Replies Latest reply on Dec 25, 2008 12:17 PM by Cinergy

    Filing taxes as a LLC in CA

    PacificPizza Newbie
      I am a new business owner. I have set up an LLC to run my pizza biz. Starting off was very difficult, but now things are under control. Unfortunately, I have not found a CPA or anything. I have just been keeping track of all my own numbers (Sales, Food Cost, etc) and paying all my own taxes with the BoA program. Not being too familar with how LLC file taxes in CA, any helpful ideas? I was thinking about using TurboTax Business Edition to file my LLC taxes for this year. Has anyone tried this? Any advice would greatly be apreciated. Is this something I can do on my own, or should I start to look for an CPA ?

        • Re: Filing taxes as a LLC in CA
          LUCKIEST Guide
          Pizza. Good luck as a new business owner. I am a Quickbooks Consultant in New York and have
          clients all over the county. I would be very happy to talk to you (FREE at no charge).
          I feel that every business person should have an Accountant, A lawyer and maybe even an Insurance Agent. Sometimes you have to spend money to make money (and sleep peacefully at night).
          If you want to talk about Quickbooks e mail me at " " and include a phone number.
          • Re: Filing taxes as a LLC in CA
            Wingman Adventurer
            Hi PacificPizza,

            Not knowing if you are a single member LLC or have multiple members, it's hard to give accurate advice.

            If you are comfortable doing your own taxes and have kept good records, then Turbotax for Business should be sufficient for you. If you have limited/no tax knowledge as they relate to business deductions and depreciation of assets, you should find yourself a professional. They should be able to discuss with you the pros/cons of filing a Fed Schedule C or electing to be taxed as a Corp.

            Also, don't forget about the State of CA LLC tax return that you will need to file in addition to the traditional Fed 1040 and CA 540 returns.

            I personally will be using TurboxTax Home and Business software to prepare my tax returns.

            Good Luck
              • Re: Filing taxes as a LLC in CA
                PacificPizza Newbie
                I have a mult-owner LLC, my wife and I. I have kept pretty good record of all my sales and expense and paid all my taxes (sales, payroll, etc.) with help from Bank of America. I am also pretty good with taxes, have been doing my personal taxes. I am also familar with certain types of deductions. I guess I can buy the TurboTax and try it out. If it gets too confusing I can always find a CPA.

                Thanks for the response guys.
                  • Re: Filing taxes as a LLC in CA
                    LUCKIEST Guide
                    Way to go, Let me know if I can help.
                    • Re: Filing taxes as a LLC in CA
                      CPA_Advisor Newbie
                      This answer may be a little late since you posted your question in January, but if you are still wondering about the answer to your question, read on. I didn't see any comments about your LLC question, so here are some things to consider. First an LLC on its own is not acknowledged by the IRS. Based on ownership and other factors, it can be taxed as a disregarded entity, which means it will show up on your individual tax return. It can be taxed as a partnership, and it can be taxed as a Corporation or an S Corporation. Typically LLC's are taxed as either a partnership or a disregarded entity. Regardless, you will need to file a California form 568, and you must review the California minimum $800 tax and LLC fee based on gross income. LLC's taxed as either a disregarded entity or partnership generally trigger self employment income and thus self employment tax, if you have an operating business.

                      Anyway, there are some basic points to consider and things to watch out for. We service clients through out the US and we are located in Southern California. Let me know if you still have any questions.
                  • Re: Filing taxes as a LLC in CA
                    Cinergy Newbie
                    Hello Lee,
                    Congratulations on your LLC. I am a certified tax preparer for over a decade, not a CPA.
                    If you are looking at long term goals, my suggestion is to seek a professional for an initial consultation. Ask all your questions to be familiar with what you have. No, you don't necessarily have to understand every aspect of an LLC or accounting. That is why you seek their professional services. They should be able to help guide you on the right track on running your business under an LLC. Accounting management is just like any other skills, it takes practice to do it right. And there are no one method to fit every shoe. But, a professional should be able to give you advice on maximizing write-offs and give you the general idea behind bookkeeping and taxes. Turbo tax would work for you if you know how to maximize your write-offs. But it will not help you understand how to operate under an LLC. Good luck!