New LLC, Please Help!

[Prestige]

Hi guys,

Someone I know recently opened up an Image and Marketing Consultation company in the State of Florida; it's an S-Corporation and they are the only shareholder. It was nearing the end of the year and they had more than one client who owed them money for past services so they opened up a Chase business account and had him make a deposit for a couple of thousand dollars.

The LLC was established on December the 16th, payment was made the next day, and that is literally the only activity their company has had all year. They have not withdrawn or deposited anymore money (or even set up online banking for that matter).

My question is, because they elected to finalize a transaction while still in 2011, is there anything they need to do/file with any agency before the first of the year? It's already the 28th and they want to verify they'll be in compliance. Can they just have their tax year be their calendar year and file all the proper forms before March 15th of 2012?

Any help is very much appreciated, I'm very good with the math behind accounting but very bad at figuring out all of the bureaucratic processes involved. Kind regards, Prestige.

 

[jerzfabguy]

Well, something doesnt add up here. They had several clients that owed them money... The llc was started in December 16th and then money was deposited the next day etc... So had they been getting paid cash for all their other services? Also, you said that it's an s Corp. But then referred to it as an llc later in your post. Which is it? Most businesses have their fiscal year set to what quarter works for them best. Ours just happens to be January. So, our tax year starts for us January 1 and we do our taxes like you would for filing personally. If it's a new business that was just filed in December and you've only got one transaction on record I would probably roll it over into 2012 because you're going to spend 30-50% of that income (which you said was a couple thousand) just paying an accountant to do your taxes. An s Corp is more expensive to have your taxes done. An llc is slightly cheaper as then it's basically a sole proprietor type situation. Just an FYI though... If you did do your taxes for this year you can pay your child up to $10k per year tax free I think. So you could ultimately get away with not paying any taxes on that money if you know how to do the paperwork right.