That’s all I can think of after the final response from this woman, who I’m sure would love to hear from other readers.  As always, these are unedited, copied and pasted, from our actual emails.  I’m sure her employers at the local hospital are so proud of her for the way in which she represents their attitude towards people.

Q-1:

From: "Life League" <lifeleague@lifeleague.com>

Subject: Tax question

I was wondering if you could answer a very basic tax question for me.

If myself and a partner were to setup an LLC, and have it organized as an S Corp with the IRS, and then we were to for example receive a payment of $100,000.00 to the LLC.

 

What would be the best way for myself and my partner to split the $100,000.00 generated by the LLC with the minimum tax burden on us personally?

Would the LLC be taxed as an S corp and then could we as members of the LLC take some sort of distribution from the LLC that would not be considered personal income?

Or would it be best to take the money out and then just pay standard IRS Personal income tax on the money?

 

Thanks much.

 

Liz

Life League

A-1:

Liz:

You absolutely must be working directly with a professional tax advisor to set this kind of thing up.  You are heading for major problems if you go any further without such assistance.

You need to cover with your professional tax advisor how the various types of entitles are taxed because it is obvious that you haven't any idea how it works.  For example, if you elect to have your LLC treated as an S corp, that means that  you agree to have all of the LLC's income pass through to your 1040s regardless of how much money you take out of the LLC.

Good luck.

Kerry Kerstetter

Q-2:

So if the S Corp LLC made $100,000.00 and as you say, that means we agree to have all the funds flow through to our 1040's, would each partner be responsible for 50% of the $100,000.00?? (Provided that the partners are 50/50 partners in the LLC that is.

 

Thanks much.

 

Liz

A-2:

Basically, that's how it works.  Any business expenses are deducted and the net profit flows to your and your partner's 1040s via the K-1 forms.  How much actual cash you each receive personally will have no bearing on the taxability to each of you. 

You need to be working directly with a tax pro and not relying on advice you find from strangers on the internet.

Good luck.

Kerry Kerstetter

Follow-Up:

From: "Life League" lifeleague@lifeleague.com

Subject: Thanks so much for all your help.....

Your unprofessional condescending comments are appreciated and well noted!!!

And I quote: "You need to be working directly with a tax pro and not relying on advice you find from strangers on the internet".

And yet again from your previous email: "....because it is obvious that you haven't any idea how it works"

How do you know I am not a local resident of AR near Harrison and looking for a tax professional and just testing the waters to see what you in fact do and do not know? You can be sure I will NOT be calling you for one of your "seminars" after all of your little rude comments you unprofessional prick.

And good luck selling your hilarious "K.M.K. Ranch" property for a MILLION DOLLARS!!! And you think I need a tax professional? Maybe you should do some research, asswipe, because you are in serious need of a real estate agent or a pscharitrist for asking one million dollars for that broken down shithole regardless of the acreage size!!!! Its ALMOST as funny as asking $4950 for a 1978 truck that blue books at less than $1000!!!!

Maybe try not to be such a prick next time and maybe you would not receive responses like this....It does not make you very happy, does it?  And FYI...I am employed by the North Arkansas Regional Medical Center on North Willow here in Harrison, and will be sure to advise all of my friends, family and anyone at KHOZ that will listen to me about how unprofessional and rude you have been.

Oh, one last thing..you are now blocked from this email account...so please....Get a life, moron!! Or should I say, Get a life "GURU".....

Love and kisses!

Liz

My Reply, which I cc’d to her hospital:

To: "Life League" <lifeleague@lifeleague.com>

Subject: Re: Thanks so much for all your help.....

Cc: pr@narmc.com

 

Liz:

I'm sorry that you don't appreciate the value of FREE advice and can't grasp the concept that you need to be working directly with a tax professional whom you pay for advice.

I'm sure your employers at NARMC are so very proud of the way in which you represent the professionalism of the hospital.  YOUR attitude says a lot about that aspect of the hospital's feelings towards people.

It also sounds as if you don't have enough work to do there at the hospital if you have time to nit-pick so many items that have nothing to do with you.

Kerry Kerstetter

 

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 5/27/2006 03:32:00 PM Send this post: