llc tax form

Document Sample
llc tax form
Shared by: tvault
Categories
Stats
views:
463
posted:
12/3/2008
language:
English
pages:
8
PRIVACY, LAWSUIT, AND ASSET

PROTECTION

NEW MEXICO LIMITED LIABILITY COMPANIES OFFER:

PRIVACY:

< NO PUBLIC RECORDS OF LLC COMPANY MEMBER NAMES

< NO DISCLOSURE OF MEMBER NAME(S) TO GOVERNMENT AT ALL

< NO ANNUAL REPORTS TO NM STATE GOVERNMENT

< NO NM STATE OR FEDERAL TAX RETURNS REQUIRED FROM LLC



PROTECTION:

< BETTER LIMITED LIABILITY THAN A CORPORATION

< AVOID PROBATE & OTHER INHERITANCE PROBLEMS

< LLC CAN RUN A BUSINESS IN ANY STATE, AND OPEN BANK AND

BROKERAGE ACCOUNTS

< LLC CAN OWN PROPERTY IN ANY STATE (VEHICLES, REAL ESTATE, ETC)



COST SAVINGS:

< NO ANNUAL REPORTS TO STATE GOVERNMENT

< NO NM STATE OR FEDERAL INCOME TAX (OR TAX RETURNS) ON LLC

< NO COSTLY PROBATE OR INHERITANCE TAX FOR ESTATES

< NO EXPENSIVE CORPORATE SET-UP OR RENEWAL FEES



WE WILL:

< CONDUCT NAME AVAILABILITY SEARCH FOR THE LLC

< SET-UP THE LLC AND PROVIDE THE REQUIRED NM RESIDENT AGENT

< OBTAIN AN E.I.N. FOR THE LLC

< PROVIDE A MEMBER OPERATING AGREEMENT FOR THE LLC

< GIVE YOU THE BASICS ON HOW TO OPERATE THE LLC

< TEACH YOU HOW TO USE THE LLC TO PROTECT PROPERTY (REAL

ESTATE IN PARTICULAR), AS WELL AS AVOID PROBATE

< OFFER OPTIONAL BANK ACCOUNT SET-UP, WITH CREDIT LINE





ONLY $1495

NATIONAL BUSINESS SERVICES, 8400 MENAUL BLVD, STE. A-167, ALBUQUERQUE, NM 87112

(505) 559-4218 llcinfo@qwestoffice.net

NATIONAL BUSINESS SERVICES

FEE SCHEDULE

NEW MEXICO LLC SET-UP: $1495

(ONLY $100 ANNUAL RESIDENT AGENT RENEWAL FEE)





SECOND OR MORE LLC’s ONLY $995 EACH WHEN REQUESTED W/

INITIAL LLC. (Have second LLC be the member of the first one for even

more privacy and lawsuit protection).





U.S. MAILING (NEW MEXICO) ADDRESS, WITH FORWARDING

FOR ENTITY: $400/yr.









NATIONAL BUSINESS SERVICES

8400 MENAUL BLVD, STE. A-167

ALBUQUERQUE, NM 87112

(505) 559-4218









National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

FREQUENTLY ASKED LLC QUESTIONS

What is a Limited Liability Company? A limited liability company (LLC) is a mixture of

the best of both worlds between a corporation and a partnership, without the formalities of a

corporation, or the requirements of a partnership. For example, a New Mexico LLC can

have as little as one member (which is impossible with a partnership), or an unlimited

number of members. The member can be another entity, an individual, a trust, or even

another LLC. LLC’s started becoming popular in the 1990's, and are the preferred vehicle

for small, medium, and even some large businesses due to their flexibility, ease of operation,

property protection, and low set-up and operating costs, especially compared to corporations.

LLC’s are also an excellent vehicle for estate planning.



What protection does an LLC offer? A New Mexico LLC offers its members the same

sort of protection of a corporation from any claims made against it. In other words, unlike a

sole proprietorship, no personal property of any member is at risk for any potential liability/

lawsuit claims that might be made against the LLC. Only the property of the LLC might

ever be at risk for liability/ lawsuit claims made against the LLC. The property of an LLC

also has the fortress-like protection of a partnership against claims that might be made

against an LLC member individually. Generally, LLC property simply cannot be touched for

whatever sort of claims might be brought against individual members. Even the IRS itself

issued a memorandum in 1999 stating that it cannot levy on property of an LLC for a claim

against the LLC member — even though it was a single member LLC!



What can an LLC do?

Generally, an LLC can do most anything an individual can do, such as run a business, own

property, and make investments. Running a business, however, is subject to the laws of

various states. For example, California claims to not allow an LLC to be registered with the

state if there is any type of professional service for which a license, certification, or

registration is required under the Business and Professions Code. However, California

Corporations Code §17450 requires the state law of any non-California LLC (i.e. New

Mexico) to govern company operations in California, and does not allow discrimination due

to any difference in another state’s laws. Under this law, it appears a non-California LLC

could render the above type of professional service if the state law where the LLC was

formed allows (or does not prohibit) it. New Mexico has no laws which prohibit an LLC

from rendering the above type of professional services. Another solution would simply be to

have the LLC be a member of another entity (i.e. partnership, corporation, etc) which holds

the license.



How Does an LLC Set Up Brokerage Accounts? This will entirely depend on the

particular broker. Since LLC’s are certainly mainstream entities, most brokerage houses will

have account applications for this type of entity.



National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

How can an LLC be used for estate planning? The general idea for estate planning is to

eliminate an individual’s property ‘ownership’ as much as possible so when the person dies

there’s little if anything left for expensive, exhaustive probate proceedings (or estate taxes).

Property that is conveyed to an LLC no longer belongs to an individual. It belongs to the

LLC, a legally recognized, entirely separate entity (which never dies). Simply put, since

property transferred to an LLC is not owned by the individual at death, it would not be part

of the person’s estate. Therefore, the particular property would not be subject to probate

proceedings. Although it is common for a new LLC member to convey property to the LLC

in exchange for the membership, and that membership would be considered property of the

individual (and therefore potentially property of his/her estate), there are a couple reasons the

LLC would provide protection. First, membership in an LLC only gives a member rights to

future income (or loss) distributions. (Remember, any individual rights to sell or dispose of

property terminated with transfer of the property to the LLC; but members may still be able

to use the property). Second, due to the extreme flexibility of LLC operating agreements,

they can be written so that a member’s death will terminate all that member’s rights in the

LLC (with distribution of those rights among other existing members). Since the member’s

rights terminated at death, there’s no more property interest left to probate. Finally, all the

above issues can be entirely eliminated for any property acquired after the LLC creation

since the LLC can acquire it directly (without any initial individual ownership at all). Since

the LLC never dies, and members can be changed virtually ‘at will’ (with consent of existing

members), property can be held indefinitely for future generations without having to be

‘transferred’ from one person to another.



What’s the difference between New Mexico LLC’s and those from other states?

There are only a handful of states (New Mexico is one) which have the combination of low

initial cost, non-disclosure of LLC members in government records (privacy), and no annual

fee or tax on the entity (low operating costs). Nevada, for example, requires annual

disclosure of all LLC member names and addresses, plus an annual statement and annual

$125 fee (not including any resident agent fee) for any LLC formed, or even just using an

address, in that state. California has similar disclosure requirements, plus a minimum $800

per year tax.



How long does it take to set-up the LLC, including obtaining an EIN?

Usually within 30 business/working days.



What are the federal income tax issues for an LLC?

For federal tax calculation purposes, an LLC entity is generally disregarded, and all income

is considered belonging to either the single or multiple member(s), and divided/distributed

according to the confidential operating agreement. Therefore, an LLC itself generally has no

federal income tax reporting requirement (no federal tax form even exists for an LLC).

Since the income is not tracked to any particular person (or entity), LLC members are

responsible for voluntarily reporting any income on a personal (or entity) return (and



National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

partnership return for multi-member LLC’s). Because LLC’s are generally considered

disregarded entities (or partnerships for multi-member companies), there is (nor could there

be) any 1099 from the LLC to any member. A K-1 form is usually used for partnership

reporting. Consult your tax advisor for further details.



What are the state income tax issues for an LLC?

This varies from state to state. For example, California has an annual LLC tax form and a

minimum $800 per year tax on any LLC registered with the state office. New Mexico has no

such form or tax. State tax issues depend on in which state(s) the LLC will be ‘doing

business’. Note that not everything an LLC might do would be considered ‘doing business’

in a particular state (i.e. owning/renting real estate). Careful consideration should be given

to the choice of address used for the LLC for any potential state tax issues.



What are the third-party tax reporting issues for an LLC?

Like corporations, payments to an LLC may not be reported at all by third-parties. However,

if any payments to an LLC are reported, they would be done on a 1099 to the LLC name and

EIN obtained at the time the LLC is set up. (Personal SSN’s can also be used for LLC’s,

especially single member ones. But we don’t recommend this in order to maintain a

distinction between the individual/member and the LLC entity). The same sort of reporting

would be done for earnings of interest, dividends, and investment profits (or losses) the LLC

may have.



Is any personal information necessary for any government forms (LLC or EIN app)?

No. Nor do we even ask for it for that purpose. The limited amount of information we

obtain is for our contact information only, or for contact by other LLC members, if any

(required by state law). It is strictly confidential.



What are the advantages of a non-member manager for the LLC?

No management headaches. More ‘arms-length’ protection of operation than if managed by

LLC member. No potential for personal liability. More personal privacy since no

interaction by the member(s) with the public.



What are the annual NM resident agent fees for the LLC? Only $100/ year for the NM

resident agent. If you are ‘doing business’ in another state, a resident agent will also be

required in that state.



What about a ‘principal place of business’ address?

A ‘principal place of business address’ is required by NM state law and can be anywhere on

the entire planet. This is the only location where any LLC member information, company

records, etc is required to be maintained.







National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

What is necessary for assistance in setting up an LLC financial account?

After your company is set up, we can also assist in opening traditional bank accounts. It may

be hard to believe, but even today some banks and bank personnel still do not know the

difference between LLC’s and corporations, and will ask for corporate documents (i.e.

corporate officer authorizations, which don’t exist for an LLC) to open an LLC account.

This has caused unnecessary aggravation, headaches, and ‘shopping around’ for banks by

people. Therefore, we not only offer assistance in opening LLC accounts, but can do so by

mail. In addition to the LLC papers filed with the state, the information necessary is the

company EIN, copy of a government photo ID (i.e. passport, driver license), a signature card/

master agreement (supplied during set-up process), possibly an SSN for each signer on the

account, and a $100 minimum initial deposit. A $250 fee is charged for assistance in

opening an account, which is all done by mail. (Please note that bank policies regarding

information for opening accounts can change at anytime, and are beyond our control).



Is it Beneficial To Set Up An Offshore Bank Account? This question has arisen on

occasion, and we take no position on setting up offshore bank accounts. The necessity or

benefits of such accounts will depend on what the management of the LLC wishes to

achieve. We have no information on such accounts and do not offer any assistance in

opening them.









National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

NEW MEXICO LIMITED LIABILITY COMPANY

APPLICATION FORM

CONTACT INFORMATION:

YOUR NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________



NM LLC COMPANY INFORMATION:

DESIRED COMPANY NAME: ____________________________________________________

#1 ALTERNATE NAME: _________________________________________________________

#2 ALTERNATE NAME: __________________________________________________

(Reprint this form if you wish to have more than one company at the same time).



DESIRED LIFETIME FOR COMPANY: ___ YEARS G PERPETUAL



PRINCIPAL PLACE OF BUSINESS ADDRESS (required by state law; can be anywhere :

__________________________________________________County Name:_________________



G CHECK HERE IF YOU WANT A U.S. (NEW MEXICO OR NEVADA) MAILING ADDRESS

W/ MAIL FORWARDING ($400/ YEAR). (This Is Different than a ‘Principal Place of Business’ Address)



THIS LLC WILL BE MANAGED BY A: G MEMBER G NON-MEMBER

NAME OF MANAGER (IF KNOWN AT THIS TIME): __________________________________

I AM INTERESTED IN LLC’S FOR: G ASSET PROTECTION/ ESTATE PLANNING

G BUSINESS VENTURES G BOTH THE ABOVE



PAYMENT INFO:

G NEW LLC ORGANIZATION: $1495

G EACH ADDITIONAL LLC ORGANIZATION: $995

G U.S. BUSINESS MAILING ADDRESS W/ FORWARDING: ADD $400 (ANNUAL FEE)

G I WOULD LIKE ASSISTANCE WITH OPENING A TRADITIONAL BANK ACCOUNT:

ADD $250.



SEND COMPLETED APPLICATION WITH PAYMENT (PAYABLE) TO:

NATIONAL BUSINESS SERVICES, LLC

8400 MENAUL BLVD, STE. A-167

ALBUQUERQUE, NM 87112





OFFICE USE ONLY: RECV DATE: __________ F/P G P/P ______ AOO STAT: G SUB G RETURNED

EIN STAT: G SUB G COMPL. SEAL STAT: G ORDERED G REC’D. BANK ACCT STAT: G COMPL.

PTC: G COMPL; DATE_______________









National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218

MEMBER(S) OF LLC:

NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________



NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________



NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________



NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________



NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________



NAME: _________________________________________________________________

MAILING ADDRESS: ___________________________________________________________

CITY: ______________________________________ STATE: _______ ZIP: _________

PHONE: __________________ E-MAIL: __________________________

PERCENTAGE OF OWNERSHIP: ________









National Business Services, 8400 Menaul Blvd, Ste. A-167 Albuquerque, NM 87112 (505) 559-4218


Share This Document


Related docs
Other docs by tvault
how to calculate income
Views: 2543  |  Downloads: 6
business plan exit strategy
Views: 180  |  Downloads: 6
sample business email
Views: 1670  |  Downloads: 12
inheritance limit tax
Views: 94  |  Downloads: 3
business ethics in islam
Views: 907  |  Downloads: 15
business letter online
Views: 33  |  Downloads: 0
business insurance new
Views: 20  |  Downloads: 0
apply card credit first
Views: 31  |  Downloads: 0
freelance opportunity
Views: 208  |  Downloads: 8
401k distribution hardship
Views: 355  |  Downloads: 6
by registering with docstoc.com you agree to our
privacy policy

You are almost ready to download!

You are almost ready to download!