<dvdwtsn4[at]gmail.com> wrote:

- quote -

Whether you maintain the LLC or not is irrelevant for tax purposes.
Single-member LLC's are disregarded for tax purposes (unless she elects to
have it taxed as a corporation, which I see no point in doing). Her income
and business expenses are going to be on Schedule C on your joint 1040
regardless.
- quote -

I have no idea what you mean by this statement. The business
income/expenses are figured before you get to the main part of the 1040,
where standard/itemized deductions come into play.

- quote -

Do you want to pay another year's fees? (I really don't see why you thought
you needed one in the first place, but that's your call. As mentioned
before, it doesn't affect taxes one way or the other.

- quote -

Doesn't matter.

- quote -

You don't "surrender" the EIN, you just stop using it. As noted before, the
LLC doesn't file anything on its own.

- quote -

Doesn't matter.

Once again I'll offer my opinion that anyone opening a business needs a
session with an accountant. Had your wife done this you wouldn't be asking
these questions and she would have known what kind of records to keep, what
estimated tax requirements there might be, and what her legitimate business
expenses were.
--
Phil Marti
Clarksburg, MD

--
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Hi,

I have been working full time for long but my wife never worked before
and we have been filing "Married filing jointly" since last year
(2007).

But in 2008, around Feb my wife opened a single owner LLC in Virginia
to get some HR consultancy work. Basically she got a tie with a HR
company that if she places anybody successfully, she will get one time
commission on that. Because of the kind of work we thought of starting
a LLC instead of sole prop. She got separate EIN for single member LLC
and certificate of LLC from VA state. She opened a business a/c in the
name of LLC too.

In whole year, she has got around 6K income only. My wife has
submitted W9 form to this company with EIN of LLC. I guess she will be
getting 1099 in Jan from this company too. Its getting difficult to
get more work and its not worth to do it anymore. So we are thinking
to close the LLC and just get the income in future (if any) as a sole
proprietorship.

- quote -


I have following questions:

1. What things should we consider before closing this LLC.
2. Should we close the LLC now (in Dec 2008) or wait after filing the
taxes.
3. Will there be any issue if we close the LLC, surrender EIN etc. now
in Dec. Then file taxes using her SSN as "Married filing jointly".

I am confused between making a decision that "Should we close LLC
asap" or "Wait till after filing taxes - next year" ?

Regards
David

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >