Partnerships & LLCs

We offer tax preparation for both partnerships and LLCs. These forms of business can face unique tax preparation requirements both at the federal and state of California levels.

Contact Safe Harbor LLP CPAs

Accountants Who Understand Partnerships & LLCs

Our team of top-rated accountants can advise business partnerships and LLC’s of all sizes—small, medium and large—on the best tax strategies available to them, maximizing the size of business partnership / LLC refunds and minimizing business income taxes to the Federal government, State of California, and city / county of San Francisco. Tax return preparations for partnerships and LLCs are “easy” if you know how (as we do).

Book Now

Partnership & LLCs Tax Returns

Don’t stress it if you’re a partnership or LLC. Our San Francisco-based CPA firm understands the in’s and out’s of how to prepare tax returns for partnerships and LLC’s. Let us optimize your taxes to the minimum allowable by law.

Partnership & LLC Taxation

Partnerships and LLCs are among the more common forms of business organizations; law firms and a few other entities may be “professional corporations.” We can help with the choice of business entity. But if you are already a partnership or LLC, fortunately, we’re an expert CPA firm when it comes to business tax issues. Partnerships and LLCs face unique challenges when it comes to tax compliance for both federal and state (California). We see quite a few “older” San Francisco businesses that are partnerships, whereas the newer ones are often LLCs.Partnership and LLC taxation and tax return preparation in San Francisco, California.

Our tax specialists keep up with all of the many changes in the Federal, California, and San Francisco tax laws so we can get the maximum deductions allowed to business partnerships and LLC corporations. This means your business partnership or LLC will pay the least amount of income taxes possible. There are a number of different kinds of business structures and issues that a CPA must know very well to effectively prepare business or corporate income tax returns. Safe Harbor LLP takes pride in knowing and understanding the intricacies of today’s business structures, including partnerships and LLC’s, and issues as they pertain to the following issues. Regardless of your size, situation or needs, we have helped someone like you, and a business like yours, so we are always prepared.

Questions and Answers on Partnerships and LLCs

Here are some common issues surrounding partnership and LLC taxation. Of course, this cannot be construed as “tax advice,” so please reach out for a consultation today.

Q. What is the difference between an LLC vs. a Partnership?
A. If you are not the sole owner of a business, you are probably in some type of partnership, and there are several. For instance, a general partnership allows all owners have equal control and responsibilities (as well as equal profits). A limited partnership means one owner has control of the operations while other owners contribute. You might view an LLC (limited liability partnership) as a bubble around the business. It protects owners’ personal assets from company assets. An LLC can be part of several partnership structures, including S Corps and Sole Proprietorships. Visit the California Secretary of State site to learn more about various business entities.

Q. What are the advantages of partnership taxes?
A. Each type of business partnership has its own tax benefits. Typically, general partnerships allow each owner to filter their expenses and earned income through personal income taxes. For small businesses, it’s a simple way to manage business tax returns. Depending on your situation, it may or may not be the wisest structure. Remember, the business structure you choose will determine your tax rates. Contact our Bay Area CPA firm to weigh each of the pros and cons. We’ll help select the proper business type for reporting partnership taxes.

Q. What are the biggest tax advantages for an LLC?
A. At its core, an LLC is a legal entity designed to protect owners from personal liability in the event of a lawsuit. LLCs may elect to be taxed as an S corporation which can be helpful if you earn a substantial wage from the business. There are several other advantages to paying taxes on an LLC, including; tax write-offs, pass-through taxation, and deductions. To review LLC and reporting details, go to the Internal Revenue Service site.

Q. Is it easy to set up an LLC?
A. LLCs are among the most popular choices for small businesses in the Bay Area. Setup costs are relatively reasonable compared to other business types, and tax reporting requirements are somewhat simple. There are several steps to begin, including applying for an EIN and registering with the California Secretary of State and Franchise Tax Board. Safe Harbor CPAs are ready to walk you through the process and provide the best tax advice for your Bay Area business. The US Small Business Adminstration has a helpful file on choosing a business structure, which you might want to read.