We Prepare Tax Returns!

We prepare most type of tax returns:

Individual. 

S Corporation.

C Corporation.

Partnership.

Payroll.

Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

Client Video Testimonials

Click here to watch some of our clients in their video testimonials!

Client Testimonials

My husband and I had to deal with canceled debt from a Deed in Lieu of Foreclosure on a second home with our 2012 taxes. We never had to deal with this type of tax experience and needless to say, we were fearful. Owing taxes on possible additional income was stressful. We searched for CPA’s as well as info about DILs and how Insolvency worked. When we came across Gary’s website, we were impressed. We found his website 8 months prior to tax season. We kept it as a “Favorite” as we knew we would need to contact him for assistance. When it was time to get a CPA, we called Gary. We felt relieved that we actually had someone that not only understood our concerns but was an expert in this area. He walked us through the process and all the time telling us not to worry. When our taxes were completed, you cannot imagine the relief we had when we actually were able to get a refund.

Gary is a dedicated professional and attentive to his clients. We love the virtual office as it is convenient during tax time and he’s fees were fair and affordable when you consider the depth of work accomplished on our taxes!

We’ve already started recommending Gary to others. We are so blessed and grateful for all that Gary did to assist with our taxes.

 

Patty and Tim, Fredericksburg, VA

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Limited Liability Company CPA discusses IRS Taxation Options | LLC Tax

Limited Liability Company CPA discusses LLC tax options

Gary Bode, CPA: There’s a reason why LLCs are so popular. For a free initial phone consult, please call 399-2705.

Limited Liability Company CPAs see the LLC touted as the business entity of choice. But the choice of business for entity depends on multiple factors. Note that LLC is a unique type of business organization allowed under state law. First used as holding companies for real estate, they’ve become popular for the limited liability they can offer each Member. If the LLC is sued, each Member is only liable for what they’ve put into the LLC. But a good lawyer can still attach to the Member’s personal assets under some conditions which aren’t addressed here. I’ll deal with IRS taxation issues which must be considered with any business startup.

“The IRS allows a Limited Liability Company to choose how it wants to be taxed.”
– Gary Bode, LLC CPA

So, how can my Limited Liability Company be taxed?

Single Member Limited Liability Company – SMLLC

This is the default IRS classification for a LLC with only one Member. However it can be taxed as a C Corporation or S Corporation as well. Your SMLLC is a sole proprietorship, but the LLC adds a layer of legal protection should the company be sued. Your Limited Liability Company’s CPA files Schedule C, Profit or Loss for Business, along with your personal Form 1040. You pay income and self-employment taxes on the profit from Schedule C. See the S Corporation section below for a nice loophole around this self-employment tax.

Partnership LLCs

Partnership is the default IRS classification for LLCs with two or more members. This is a very flexible entity. Profits, losses and equity can be re-allocated at will. This makes attracting investors and accommodating the changing needs of current Members easier. The Limited Liability Company’s CPA files Form 1065, U.S. Return of Partnership Income. The LLC incurs no tax per se. But profits, losses and equity flow into each Member’s Schedule K-1. And that information then flows into each Member’s Form 1040. Partners can’t be paid as employees, so profits and distributions are subject to self-employment tax.

C Corporation

Your Limited Liability Company’s CPA files IRS tax Form 8832, Entity Classification Election, to request being taxed as a C Corporation. This action makes sense in two cases 1) as the initial step to becoming an S Corporation and 2) if the LLC might go public in the future. C Corporations are double taxed.

S Corporation

Here your LLC’s CPA files Form 2553, Election by a Small Business Corporation, after approval of Form 8832 mentioned above, to turn the LLC from a C Corporation into an S Corporation. I know it seems convoluted. Distributions from S Corporations are not subject to self-employment tax. Which can be a nice cash flow advantage during LLC startup. S Corporations aren’t double taxed either. But they lack the flexibility of a Partnership for attracting new shareholders or adapting to current shareholder’s changing needs.

We’re a Wilmington NC Limited Liability Company CPA firm. Our virtual office allows us to provide excellent service to long distance clients. For a free initial phone consult please call (910) 399-2705

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