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LLC business or tax attorney questions ?
Anonymous2 views3 answers
My llc has a hardware store and blade sharpen business.My llc charges a 3 percent fee to sharpen blades. My commissioned employee gets 1%, I get 1%, and my llc gets 1%. Can I report my personal 1% and llc 1% money together under other income ? I report the hardware store money as s corp but the small amount of blade business as other income.
You’re confusing us with CPA’s. Unclear how your LLC is formed and who owns it. In any event discuss your taxes with a CPA - the appropriate professional to address this issue.
You asked a tax question so I changed your topic to Tax. Based on the specific facts you stated, your LLC which has elected to be taxed as a corporation should report all income from all sources including blade sharpening on its IRS form 1120. Commissions paid to employees would be deductible. Commissions are also subject to income and SSA withholding taxes and reportable on federal and state employment and unemployment tax returns. As another lawyer noted, your CPA ought to be handling the form 1120 and assisting you or handling the federal and state [if any]
employment and unemployment tax returns. Treating commissions as non-LLC income requires a legal structure different than what you described, and, if you wish to pursue that,consult both your accountant and lawyer.
