Hi,
Would anyone have time to help answer the following questions?
An accountant filed paperwork in Alabama on behalf of our
small licensed electrical business to become an LLC on 7/18/17. We asked the accountant to set up some form
of partnership for my husband and son to work together in our small electrical
business. The LLC that we filed
paperwork for has 2 members, my husband, and our 27 year old son. The accountant we used last year
retired. I’d like to try to do our taxes
myself using TurboTax. I’ll probably
have a new accountant check them over before filing so I’m not looking for
legal advice. I’m just looking for answers
to my questions relating to understanding the big picture of what we’ll be
filing for my husband & myself and our son’s taxes.
1. In 2016, my
husband was a sole proprietor the whole year.
In 2017, for the time period 1/1/17 – 7/17/17, my husband was a sole
proprietor, and our son did electrical work as a sole proprietor/independent
contractor.
For the period 7/18/17 – 12/31/17, my husband and son were members
of our LLC. Which Turbo Tax should I buy
to do taxes for my husband & myself and our son - T.T. Deluxe and T.T. Business or can I get by
with just one of them.
2. Please correct me
if I’m wrong on this – my understanding is that we do not need to file form
1065 for a partnership nor Schedule K. I
was a little confused at first, because of terminology - I thought we were a ‘partnership’,
but if I’m not mistaken, I think I should quit using the term ‘partnership’
because as far as IRS is concerned, we are not a partnership, we’re an
LLC. Is this correct?
3. Do I file 2
Schedule C’s for 2017 on behalf of my husband – one for 1/1/17 – 7/17/17 under
the name of the sole proprietorship that we used to have and a second Schedule
C for 7/18/17 – 12/31/17 for our new LLC?
Do I need to file 2 schedule C’s for our son also who did electrical
work as an independent contractor from 1/1/17 – 7/17/l7 and as a member of our
LLC from 7/18/17? Our son also has a
graphic design business so I’m thinking I’ll be filing a third Schedule C’s for him. Does this sound correct?
Thank you in advance for any help you can give. As I mentioned, I’m not asking for legal
advice so you can skip all the disclaimers if you want. I just like to do the taxes myself via
TurboTax before we have an accountant check them. Thank you.
