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Returning Member
posted Jun 29, 2020 8:57:13 AM

PLLC

My husband works for himself as a Physical Therapist , He has a PLLC and paid himself from it therefore he has a W2 from his own company, how do I file that ad where?

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1 Best answer
Level 15
Jun 29, 2020 9:21:03 AM

If your husband is the only member of his PLLC, he does not pay himself and he does not give himself a W-2. A single-member LLC or PLLC is disregarded for income tax purposes. That means that your husband and the PLLC are one and the same. If he "paid himself" all he did was take money out of his own pocket and put it back in the same pocket.


If there are other members of the PLLC, then it is treated as a partnership for income tax purposes. In that case there are additional tax return requirements. (I assume that you are not a member of the PLLC.)


If your husband has been handling the PLLC income incorrectly, he needs to meet with an accountant to get professional guidance on how to handle the accounting and taxes for his PLLC.

 

4 Replies
Level 15
Jun 29, 2020 9:21:03 AM

If your husband is the only member of his PLLC, he does not pay himself and he does not give himself a W-2. A single-member LLC or PLLC is disregarded for income tax purposes. That means that your husband and the PLLC are one and the same. If he "paid himself" all he did was take money out of his own pocket and put it back in the same pocket.


If there are other members of the PLLC, then it is treated as a partnership for income tax purposes. In that case there are additional tax return requirements. (I assume that you are not a member of the PLLC.)


If your husband has been handling the PLLC income incorrectly, he needs to meet with an accountant to get professional guidance on how to handle the accounting and taxes for his PLLC.

 

Returning Member
Jun 29, 2020 9:34:50 AM

My husband has been paying taxes quarterly with an accountant. My question is when I am in TurboTax , where would I add the total amount paid to his PLLC? he works as a PT for an agency that bills the insurance and then pays him. He then pays himself through his PLLC and pays taxes on his income. 

Level 15
Jun 29, 2020 11:09:17 AM

You haven't said whether your husband is the only member of the PLLC, or there are other members. If he is the only member, you have to enter the PLLC in TurboTax as a business. You report the money that the agency paid to the PLLC as business income.


It's the "pays himself through his PLLC" that's the problem. He can't do that. The income that the PLLC receives from the agency is your husband's personal income because, as I said earlier, "your husband and the PLLC are one and the same." He cannot give himself a W-2. He needs to talk to his accountant about how to handle his income. Again, this is all assuming that your husband is the only member of the PLLC.

 

Level 15
Jun 29, 2020 11:29:14 AM