Purchase of business franchise

Congratulations on becoming a new business owner!

First item to discuss is the LLC. If it was set up as a single member/owner LLC (SMLLC) then it is disregarded for additional partnership tax reporting which means no additional tax return is required like a partnership return form 1065.  The income and expenses of the business will be reported as a schedule C on your personal 1040 tax return.  

If an LLC is owned by multiple members or by a husband and wife in a non-community property state the LLC should file as a partnership. However, in community property states you can have your multi-member (husband and wife owners) and that LLC can get treated as a SMLLC for tax purposes.

Once you have the reporting requirements figured out you are ready to review income and expense rules for the business.  The IRS has a great resource for business owners that discusses all the tax aspects.  It can be found here:

IRS small business owner tax center 

Also you may want to review the rules regarding start up expenses found here on the Turbo Tax link:

Turbo tax start up costs  

Bookkeeping and tracking your income and expenses will be very important come tax time.  Be sure to use an accounting software that meets your needs for the business.  I recommend the Quick Books Online version that is offered by Intuit.  More information can be obtained at this website 

Quick Books 

Good luck on your new venture!

Catherine offered some excellent advice!  I'd also like to point you to our Life Event Hub for various articles related to getting started with your new business.  It is updated frequently with new articles and information.

Starting a Business