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 Testimonials

I used Gary’s services to file my 2012 income tax return. This was my first year having an accountant do my return, as I have always done it myself using TurboTax. However, this year I had cancelled debt from my old primary residence which I was forced to convert to a rental property after relocating out of state.

While it didn’t cost me anything to do the short sale, the income tax consequence from the cancelled debt, roughly $50,000 in my case, was enough to move me from the 15% tax bracket to the 25% tax bracket. Needless to say, I was concerned about that.

Finances were already tight and my husband and I are expecting our first child this fall. So the possibility of owing income tax was stressing me out. However, Gary was great at relieving my fears.

He is extremely knowledgeable, answered all my questions and was very thorough. I knew I was in good hands. He kept in constant contact with me throughout the process, keeping me updated on the progress of my return and letting me know what paperwork he needed to complete my filing.

In my mind, best case scenario would have been to not owe any taxes. Second best would be to only owe a little. Well, you can imagine my surprise and delight when Gary told me I was actually due a refund of a little over $2,700.00!

To top it all off, I found Gary’s fee for service to be fair, competitive and affordable; especially given the complexity of this type of return. I am so glad I did not try and go it alone this year. I am extremely pleased with Gary’s service and would recommend him highly to anyone, in fact I already have. If you have cancelled debt from a short sale or foreclosure, don’t freak out. Take a deep breath and call or email Gary. I am grateful I did.

Angie Falke of Holiday, FL

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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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LLC CPA discusses Limited Partner Self-Employment Tax | Form 1065

Gary Bode, CPA: all IRS LLC issues aren't definitive! For a free phone consult, call 399-2705.

Self-employment tax issues still exist for LLC Members because the IRS isn’t definitive about the subject - at least in some circumstances. Check with your LLC CPA, as this post offers only general guidance on a non-definitive subject.

Self-Employment Tax, in General

A traditional employee pays Social Security and Medicare taxes. The employer matches these taxes, generally speaking. Self-employment tax combines the employer and employee tax components for folks working for themselves. Obviously, taxpayers often avoid self-employment tax when possible. Even though part of it builds up your potential Social Security check amount when you’re old and gray! Dream on. As a LLC CPA, I like to use a rule of thumb to help clients visualize taxation issues. The self-employment tax rates can fluctuate, but figure they’re about 15% of your income from a LLC if you must pay them.

LLC Self Employment Tax

If you’re a Single Member LLC, all your profit is subject to self-employment tax. Consider electing to be taxed as an S Corporation for partial relief.

Most Multi-Member LLCs can elect to be taxed as a Partnership. Limited partners do not incur self-employment tax. Limited partners usually:

  • Have no personal liability for the debts of or claims against the LLC by reason of being a partner/member.
  • Have no authority under state law to contract on behalf of the LLC.
  • Don’t participate in the LLC’s trade or business over 500 hours during the entity’s taxable year.

The IRS Wrinkles

  • Members of LLCs engaged in the practice of health, law, engineering, architecture, accounting (darn it), actuarial science, or consulting aren’t generally limited partners and thus are subject to SE tax unless they provide no services to or on behalf of the LLC.
  • A Member of an LLC can be treated as a limited partner even if he/she participates in the LLC’s trade or business for more than 500 hours if 1) The member would be treated as a limited partner if not for his/her participation in the LLC’s trade or business for more than 500 hours or 2) Other members who are treated as limited partners own a substantial continuing interest in the LLC; and/or 3) Other members have rights and obligations with respect to their membership interests in the LLC that are identical to those of the member participating in the LLC’s activity for more than 500 hours during the taxable year.

I suggest documenting cases well where your LLC claims Limited Partners.

We’re a CPA firm that deals extensively with LLC taxation. Thanks to our Virtual Office, we offer excellent service to long distant and international clients. For a free phone consult, please call (910) 399-2705.

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