Hi @Carl ,
I would definitely appreciate your help. My wife and I converted her sole proprietorship (SP) business to a two member LLC (husband and wife). If I understand correctly, SC is not a community property state, so the IRS considers the LLC a partnership (provided we don't file for a different classification and at this point, I don't see any reason for us to do so). If you do and have the time, feel free to mention why we might consider a different classification.
But moving on to the subject of the original post...
Below are the answers to your questions:
First let me tell you the business has been a hair salon for years, but we expanded (added a day spa in 2018)
1. ASSETS: The SP business does have a few assets, but they aren't extremely high value items (i.e. washing machines, furniture, massage tables, stylist stations, reception desk, computer, etc.)
SIDE NOTE: If it matters, through 2017 we have selected the section 179 deduction on all assets. We have filed an extension for 2018 and I am still trying to get everything organized.
2. INVENTORY: We do stock a little inventory(i.e. various hair products, lotions, blow dryers, irons, etc) Estimated value on average is about $15,000
3. EXACT DATE Sole Proprietor:10-01-2009
4. EXACT DATE LLC FORMED: 7-19-2019
All I have done thus far is file the LLC paperwork. I'm using QuickBooks to pull each 2019 business checking account statement one month at a time. I'm only vaguely familiar with QuickBooks, but I am pretty good with numbers and my background is in IT. I'm also fairly familiar with simple small business taxes from reading and researching in order to do her business taxes since 2009. However, I'm having a few issues with 2018 (but I'll ask that in a separate post).
As I'm preparing "from scratch" for our 2019 taxes, I'd genuinely appreciate any advice you can offer, especially in regards to the LLC conversion.
