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- Feb 3, 2021
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My brother and I are owners for a S-Corp in Georgia. He's a passive investor and I'm the manager/employee. The corporation is experiencing reduced revenues so we're thinking about switching over from S-Corp to LLC Partnership in order to reduce our overheads / costs and simplify things.
Since I'm on the only employee at this time and I get paid on an annual basis at the end of Dec, to keep things simple I've been filing the following:
Quarterly:
941 - $0 for Q1,Q2,Q3
GA DOL-4A - $0 for Q1,Q2,Q3
GA DOR-G7-M - $0 for Q1,Q2,Q3
Annual:
940
GA DOR G-1003
W2
1099
As I understand the 1040-ES and 500-ES would be required to be paid by each member/partner whether it be for S-Corp or LLC Partnership.
Would I need to continue to file the other forms if we switched from S-Corp to LLC Partnership?
If there is no W2 and my brother continues as a passive investor, he would only be responsible for 1040-ES and 500-ES based on the quarterly P&L and since I'm the only active manager but now with a LLC Partnership I don't need to pay myself a payroll, I don't need a W2 but will continue with the quarterly 1040-ES and 500-ES. However since I'm actively managing the LLC I would need to pay employment taxes (50% of which can be expensed). Can this be done at the end of the year as part of filing the annual tax returns or do I still need to go through the quarterly and annual filings as I'm currently doing with the S-Corp?
Since I'm on the only employee at this time and I get paid on an annual basis at the end of Dec, to keep things simple I've been filing the following:
Quarterly:
941 - $0 for Q1,Q2,Q3
GA DOL-4A - $0 for Q1,Q2,Q3
GA DOR-G7-M - $0 for Q1,Q2,Q3
Annual:
940
GA DOR G-1003
W2
1099
As I understand the 1040-ES and 500-ES would be required to be paid by each member/partner whether it be for S-Corp or LLC Partnership.
Would I need to continue to file the other forms if we switched from S-Corp to LLC Partnership?
If there is no W2 and my brother continues as a passive investor, he would only be responsible for 1040-ES and 500-ES based on the quarterly P&L and since I'm the only active manager but now with a LLC Partnership I don't need to pay myself a payroll, I don't need a W2 but will continue with the quarterly 1040-ES and 500-ES. However since I'm actively managing the LLC I would need to pay employment taxes (50% of which can be expensed). Can this be done at the end of the year as part of filing the annual tax returns or do I still need to go through the quarterly and annual filings as I'm currently doing with the S-Corp?