Welcome Guest. Register Now!  



 
 
LinkBack Thread Tools Search this Thread Display Modes
Prev Previous Post   Next Post Next
  #1 (permalink)  
Old 06-30-2016, 10:23 PM
Junior Member
 
Join Date: Jun 2016
Posts: 3
LLC Partnership managed by another LLC

Background:

Company A LLC
Company A LLC is a Florida LLC. For tax purposes, this LLC is a Partnership. The company was formed in 2014 and at the time had 4 partners. Today the company has 3 partners.

Company A LLC current partners are as follows:
Company B LLC, a Wyoming LLC has 92.5% ownership
XXX LCC, a Florida LLC has 5% ownership
YYY LLC, a Florida LLC has 2.5% ownership
Company A provides IT staffing and Recruiting Services. Currently Joe has been responsible for all of the activities related to the company. We may have employees in the future, but currently Company A does not have any employees on payroll.

2016 will be the first profitable year for Company A. Profits are expected to be between $150k- $200k.

The current Manager of Company A is Company B LLC.

Company B LLC
Company B LLC is a Wyoming LLC and was formed a couple months earlier than Company A. It is essentially a holding company for Company A and any future companies that Joe may start or buy. For tax purposes, this LLC is currently a Disregarded Entity; however Joe is planning to convert it to an S Corp in the very near future (this week or next).

The current Manager of Company B LLC is Joe.

Questions
1. So far this year, Company A has not disbursed any income to its Partners. Should Company B;s conversion to an S Corp occur before and income is disbursed?
2. Should Joe be on Company A;s payroll, Company B;s payroll, or both to minimize Joe;s overall tax burden?
3. If the answer is to #2 is that Joe should just be paid out of Company B;s payroll, should his salary be based on his work as a Manager of Company B and also Company A or should his payroll be based on his IT Recruiting work that he is doing on behalf of Company A? Essentially, I;m trying to figure out what an acceptable salary is for Joe that will minimize Payroll taxes.


Last edited by Henry0823 : 06-30-2016 at 10:28 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
 


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
New Partnership fitnessga Limited Liability Company 1 04-03-2016 04:30 PM
New Partnership fitnessga For 2016 0 04-02-2016 11:37 PM
Partnership No More CPR Man Limited Liability Company 1 04-14-2011 06:35 AM
Partnership question bizowner75 Limited Liability Company 1 03-31-2011 10:22 PM
Partnership Wh716 Income 1 04-18-2007 01:47 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.