LLC: Multi-Member LLC

What is a Multi-Member LLC?

If you have more than one owner, Deductr will still work as a tracking tool and you will be able to get all the benefits of the automated and mobile features. In fact, you can link multiple bank accounts and multiple mobile phones to the same account. Just keep in mind that the tax savings calculation will not necessarily estimate correctly for you.

There are a lot of factors to consider when it comes to the accuracy of the tax savings calculations and Deductr is currently only set up for sole proprietors. If you are working outside this model, you can look at the tax savings monitor (the Blue Bar on the graph) as a "trend" indicator and not as a good estimator of dollar amounts.

Even though you can run multiple bank accounts and mobile phones to one Deductr account, all mileage will be consolidated as if from one person and one vehicle. It can still work but will require some effort to separate the mileage report at the end of the year.

The important consideration here is that the tracking of expenses and mileage is greatly simplified with the automated features in Deductr and each partner can still enjoy the benefits of such simplicity.

LLC's with only one member are treated like a sole proprietorship for tax purposes. The member reports profits, losses, and deductions on Schedule C-- just like a sole proprietor. An LLC with two or more members is ordinarily treated like a partnership: The LLC must prepare and file IRS form 1065, Partnership Return of Income, showing the allocation of profits, losses, credits, and deductions passed through to the members. The LLC must also prepare and distribute to each member s Schedule K-1 showing the member's allocations of profits, losses, credits, and deductions.

Note: Consult your tax professional to see if this fits your circumstances. This is not to be taken as tax advice. Please refer to our End User License Agreement. 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request


Article is closed for comments.