What Are The 8 Flags For An IRS Audit? The Danger Of A Single Member LLC

What Are The 8 Flags For An IRS Audit? The Danger Of A Single Member LLC

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VIDEO TRANSCRIPTION – What are the 8 flags for an IRS audit? The danger of a Single Member LLC. Tip 3 of 8. Hi, I’m Steven D. Cooper your master tax strategist with Coopers Accounting Service, because your financial freedom matters.

If you’d like to learn more great tax tips, download our popular financial guide at our website, yourfinancialfreedommatters.com or click on the link below this video.

What is a single member LLC? It is a legal entity where there’s only one owner. So when you file your tax returns, you file as a Schedule C. The asset protection you think you’re going to get, you don’t get. Once again, you file as a schedule C.

You are legally established through your state secretary of state, but the asset protection is not there because you filing the tax return on your 1040. You’re not doing it in a C Corp, S-Corp, or partnership.

So what we advise our clients is this who have a single member LLC. We either legally convert them over to a C Corp or an S Corp and a partnership if applicable. So by explaining our clients what their legal options are, they then can make better business decisions.

One of my biggest strategies as a tax strategist is Asset protection first, tax strategy protection second.

For more easy financial tips, sign up for a financial tip newsletter by going to yourfinancialfreedommatters.com or click on the link below this video.

If you’d like to download a financial guide as well. If you’d like a free 20-minute smart money consultation, give us a phone call, 562-436-2600. Well again, I’m Steven D. Cooper. Your master tax strategist with Coopers Accounting Service. 

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