The LLP (limited liability partnership) is one of the more popular organizations of small businesses these days. Many attorneys working with smaller startups, for example, will recommend that you set up an LLP. We won’t go into the complexities of how LLPs work and how they work vis-a-vis the general and limited partners. For that, please contact our office. Every situation is unique, and we prefer to work one-on-one with businesses so we can give detailed, credible advise.
In terms of a short blog post, let’s talk about some housekeeping for your LLC that will help us and help you (and any other partners) out there. Sort of like pre-tax preparation. We call it pre-preparation. There’s preparing the taxes, after all, and then there’s preparing to prepare the taxes. We’ll prepare the taxes for your San Francisco LLP, but please help us by preparing to prepare for your taxes.
For example –
- Keep Records. Everyone in the business, from the most junior employee to the most senior shareholder, MUST keep records in terms of income and expenses. It’s very frustrating when we get close to tax season and the various employees and partners of an LLP have NOT completed their expense reports, we’re not sure where records are located, etc.
- Bookkeeping, bookkeeping, bookkeeping. Did you know that bookkeeping is the only word in the English language with two o’s, two k’s, and two e’s? It’s also the most problematic word in our pre-tax preparation preparations. Make sure that someone keeps the books, and please don’t try to do it the weekend before you come in! We can recommend some good San Francisco bookkeepers, but nowadays with the Internet they can really be anywhere.
- Partner Information. We’ll need the social security numbers, names, and addresses of all partners of course, so round those up.
- 1099’s. Most businesses have both employees and outside contractors. We’ll need to 1099 those outside contractors. A good practice is to get their W9 information when you do business with them; in fact do NOT pay anyone without a W9. They’ll be eager to comply to get paid, but if they’ve already been paid they may ignore your phone calls and emails.
- Employee Information. If you’re using a service to pay employees, make sure that we have access to that. If not, gather up all the information on employees. Similar to outside contractors, we’ll need that information.
There are many, many ways that you can help us prepare your LLP (limited liability partnership) tax return. Help us by pre-preparing for your taxes. We are among the most common, most popular LLP tax preparation services in San Francisco. And that, my friend, is good preparation!