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Makrita
real estate investor
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Accting questions on series LLC
Friday, December 15 2006 11:54 AM
Although I know neither of you are an accountant, I had a question about the new series LLC (specifically DE, altho I don't think it matters). I understand LLC's to be 'pass thru' entities, as learned in your courses, however, I understand a 1065 has to be filed to alert IRS how we want these entities treated (either as a corp. or individiual/per member). My questions are:
- As a series LLC do we file one 1065 or one for each in the series?
- Do we keep one set of books for the whole series, or keep books for each LLC in the series?
- Do we have to hire a DE accountant to file our returns for these, or since they are 'pass thru' entities, we just need an accountant for our inidividual returns in our home state?
- When setting up the series LLC in DE, do you recommend we get a DE attorney to prepare the operating agreement, or can we just use a 'canned' agreement from one of the websites you recommended (i.e. www.incorporate.com?
Thanks
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Randy Hughes
Master Advisor-39 years of experience
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Re:Accting questions on series LLC
Friday, December 15 2006 02:21 PM
Makrita,
- As a series LLC do we file one 1065 or one for each in the series?I BELIEVE YOU ONLY NEED TO FILE ONE.
- Do we keep one set of books for the whole series, or keep books for each LLC in the series?YOU NEED TO KEEP SEPARATE BOOKS FOR EACH SERIES
- Do we have to hire a DE accountant to file our returns for these, or since they are 'pass thru' entities, we just need an accountant for our inidividual returns in our home state? YOUR LOCAL ACCOUNTANT SHOULD BE ABLE TO FILE THE LLC RETURN AND ISSUE THE K-1'S TO THE MEMBERS OF THE LLC (THE MEMBERS THEN FILE THE K-1 INFO ON THEIR PERSONAL RETURNS...ASSUMING THE LLC IS NOT A SINGLE MEMBER).
- When setting up the series LLC in DE, do you recommend we get a DE attorney to prepare the operating agreement, or can we just use a 'canned' agreement from one of the websites you recommended (i.e. www.incorporate.com? DEPENDS ON HOW INVOLVED YOU WANT TO GET. I WOULD START OUT WITH A BASIC AGREEMENT FOUND ONLINE AND THEN AFTER STUDYING LLC'S AND OTHER OPERATING AGREEMENTS...AMEND MY BASIC PLAN TO MAKE IT BETTER AND BETTER.
GOOD LUCK
Randy Hughes
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