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Posted: 8/13/2005 3:13:31 PM EDT
I recently formed an LLC & have 3 Form 4's in the pipeline.  For you guys that have some experience with this, what state tax forms need to be filed on a periodic basis?  I got a quarterly PA Form REV-875R sent to me for Capital Stock & Corporate Net Income reporting.  It says to file this only if there is something to report.  Of course, my LLC doesn't have any income or capital stock so it looks like I don't need to send this in.
Also, I never got an EIN because the LLC will never have any employees.  Does anyone know if I need to get an EIN?
It would be nice if we had a tacked FAQ for PA corporate NFA questions.  For those of you that stick with individual transfers, you should consider much easier it is to just fill out a Form 1 or 4, sign & mail with your check.  I never really thought much about making an SBR, but I'm now thinking it's too easy not to!
Link Posted: 8/15/2005 1:23:44 PM EDT
[#1]
Your EIN will be your social security number

You merely list the LLC on your personal federal income tax return; you do not have to pay any tax if the LLC does not generate any income
Link Posted: 8/15/2005 4:21:15 PM EDT
[#2]
The income you receive on a LCC is transferred to your personal income tax Schedule C. It is basically the same as being a sole proprietor but with additional liability protection. One note, PA is the only State to have a tax on LCC if the business assets exceeds a certain amount ($20K I think). Check with a bean counter. The bottom line is that you should transfer all funds from your LCC account to your personal account before Dec 31 so the LCC does not show any substantial assets.

A quick check with a accountant would answer all questions completely  and correctly. This is my first year as a LLC and this is how all was explained to me. Will find out for sure on Tax Day!

We had decent income this year but filed nothing yet.
Link Posted: 8/16/2005 5:03:00 PM EDT
[#3]
.
Link Posted: 8/16/2005 5:13:35 PM EDT
[#4]
Thanks guys.  I do want to keep as much in the LLC as I can because it allows my wife access as an LLC member.  I checked & found that PA LLCs are subject to capital stock tax.  
"The capital stock tax is being phased out, with the rates set as follows: 5.99 mills for 2005; 4.99 mills for 2006; 3.99 mills for 2007; 2.99 mills for 2008; 1.99 mills for 2009; and .99 mills for 2010.
Pennsylvania limited liability companies (other than restricted professional corporations) that are taxed at the federal level as a partnership are subject to the capital stock tax."
From what I've found so far, it looks like the threshold for having to pay this starts at $125,000 - I'm not anywhere near that.  Also, sounds like it's going away.

Link Posted: 8/17/2005 11:44:34 AM EDT
[#5]
Again, talk to a professional but once the money is made by the LLC, it can be transferred to your personal account without issue and without losing any of the Liability protection for you or your family. The point of the LLC is that your personal assets are protected if you are doing business as a LLC. Once the money is earned it can be moved the next day without issue. My guy is telling me that the PA tax starts at $20K of assets (not just cash in the bank). From what I can see there is no reason whatsoever to keep any money in the LLC unless you are making a purchase from that account. Then you simple transfer from your personal account the amounts you need. I keep only about $ 1K in my LLC account to cover gas, food, etc from my debit card.

A call to a bean counter is needed to confirm all facts.
Link Posted: 8/18/2005 1:03:49 PM EDT
[#6]
If all you are doing is putting your NFA stuff in the LLC, you should be fine.  I have never heard about state taxation of assets exceeding $20K in value.  You should definitely check on that and post here when you do to clarify this issue.  
Link Posted: 8/19/2005 12:29:17 PM EDT
[#7]
www.revenue.state.pa.us/revenue/cwp/view.asp?A=11&QUESTION_ID=36879

I found this on the Pa Dept of Revenue web.  There's a formula for calculating capital stock valuation.  I formed the LLC for NFA purchases only - The only "income" will be addition of NFA items.  The parenthesis don't quite make sense, but I figure that if I add $20,000 to the LLC & count this as income, then count this as net worth all in 2005, I still wouldn't exceed the valuation deduction of $125,000.  This sounds like double counting, but should be worst case.

The corporate thing sounds better all the time.
Link Posted: 8/19/2005 2:46:23 PM EDT
[#8]
good luck understanding all that his
Will know for sure next April 15 if I did all right.

Good luck to us both!
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