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Business Tax Responsibilities Clarification
Summary
In New York, each LLC member is typically responsible for their own taxes on income, unless specified otherwise in the operating agreement. Article 6.4 of your agreement mandates tax distributions from available cash but does not obligate the business or partner to cover personal taxes. Common deductions include business expenses and childcare if necessary for work. Commuting costs are generally non-deductible. Moving expenses are not federally deductible post-2017, but check New York State rules. Majority owners obligations to inform minority owners about business closure depend on the partnership agreement terms.Full Conversation
I was a minority owner in a business. My title was partner and director of hospitality. I did not put any money into the business. I took a draw from the business as my partner told me this was they way I had to get paid. The business is closed and now he is refusing to pay my income taxes. This is in New York State. Is he required to by law?
Did you have any written agreement or contract regarding how the business finances and taxes would be handled, especially regarding your income draws?
Can I send you a portion of the agreement?
Sure, you can share a portion of the agreement. This will help in understanding the specifics of your situation better.
Does this document make my partner or the business responsible for my personal income taxes?
Case Rating: *
The document provided does not make your partner or the business responsible for your personal income taxes. Each member of an LLC is typically responsible for their own taxes on their income from the business, as it is usually considered pass-through taxation.
To provide more specific guidance, it would be helpful to know:
- Was there any specific clause in the agreement about tax responsibilities?
- Did you receive any official documentation like a K-* form for your income?
Would you like to provide more details on any clauses related to tax responsibilities in your agreement?
The document provided does not make your partner or the business responsible for your personal income taxes. Each member of an LLC is typically responsible for their own taxes on their income from the business, as it is usually considered pass-through taxation.
To provide more specific guidance, it would be helpful to know:
- Was there any specific clause in the agreement about tax responsibilities?
- Did you receive any official documentation like a K-* form for your income?
Would you like to provide more details on any clauses related to tax responsibilities in your agreement?
I have a K!
Case Rating: *
In a New York LLC, each member is generally responsible for their own taxes on their income. However, to provide accurate advice, it would be helpful to know:
- Was there any specific clause in the agreement about tax responsibilities?
- Did you receive any official documentation like a K-* form for your income?
Could you please provide more details on any clauses related to tax responsibilities in your agreement?
In a New York LLC, each member is generally responsible for their own taxes on their income. However, to provide accurate advice, it would be helpful to know:
- Was there any specific clause in the agreement about tax responsibilities?
- Did you receive any official documentation like a K-* form for your income?
Could you please provide more details on any clauses related to tax responsibilities in your agreement?
k1
Case Rating: *
The K-* form indicates that you are treated as a partner for tax purposes, and typically, each partner is responsible for their own income taxes.
However, if the operating agreement specifies otherwise, those terms could alter the general responsibility.
Would you like to provide more details on any clauses related to tax responsibilities in your operating agreement?
The K-* form indicates that you are treated as a partner for tax purposes, and typically, each partner is responsible for their own income taxes.
However, if the operating agreement specifies otherwise, those terms could alter the general responsibility.
Would you like to provide more details on any clauses related to tax responsibilities in your operating agreement?
please see article *.* in this document
Case Rating: *
Article *.* of your document is not provided here. Generally, each member of an LLC is responsible for their own taxes on their income, unless the operating agreement specifies otherwise.
To assist you better, could you share the specific text of Article *.*?
Article *.* of your document is not provided here. Generally, each member of an LLC is responsible for their own taxes on their income, unless the operating agreement specifies otherwise.
To assist you better, could you share the specific text of Article *.*?
*.* Tax Distributions. With respect to each taxable year and portion thereof in which
the Company is taxed as a partnership for U.S. federal income tax purposes, the Manager shall
cause the Company, within 90 days of the end of each Fiscal Year other than the year in which the
Company liquidates, to distribute to the Members in proportion to the Net Profits allocated to the
Members an aggregate amount (a “Tax Distribution”) that will provide to each Member an amount
equal to at least *% of the Net Profits allocated to that Member for such year, less any amounts
previously distributed to the Members with respect to such fiscal year pursuant to Section *.*.
Case Rating: *
Article *.* mandates the company to distribute an amount to members to cover at least *% of their allocated Net Profits for tax purposes. However, it does not make the company or your partner responsible for your personal income taxes beyond this distribution.
Would you like to discuss this further or have any more questions?
Article *.* mandates the company to distribute an amount to members to cover at least *% of their allocated Net Profits for tax purposes. However, it does not make the company or your partner responsible for your personal income taxes beyond this distribution.
Would you like to discuss this further or have any more questions?
Distributions under this Section *.* shall only be made from Distributable Cash and only to the
extent funds are legally or otherwise available therefor in the discretion of the Manager and would
not result in the Company’s breach of any obligation. All distributions to a Member under this
Section *.* shall take priority over and shall reduce the amount of distributions otherwise to be
made after that date to that Member under Section *.* by the same amount.
Case Rating: *
The document outlines that tax distributions under Section *.* are made from Distributable Cash and only if funds are available, and it prioritizes these distributions over others. This does not obligate your partner or the business to pay your personal income taxes beyond these distributions.
Would you like to clarify anything further or have additional questions?
The document outlines that tax distributions under Section *.* are made from Distributable Cash and only if funds are available, and it prioritizes these distributions over others. This does not obligate your partner or the business to pay your personal income taxes beyond these distributions.
Would you like to clarify anything further or have additional questions?
What may I declare as tax deductions?
Case Rating: *
In general, for tax deductions in New York, here are some common deductions you might consider:
- State and local taxes
- Mortgage interest
- Medical and dental expenses
- Charitable contributions
- Business expenses (if self-employed)
Do you have specific expenses you are considering for deduction?
In general, for tax deductions in New York, here are some common deductions you might consider:
- State and local taxes
- Mortgage interest
- Medical and dental expenses
- Charitable contributions
- Business expenses (if self-employed)
Do you have specific expenses you are considering for deduction?
transportation
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For transportation expenses to be deductible, they must be ordinary and necessary for your business. Here are some common deductible transportation expenses:
- Business-related travel (e.g., client meetings)
- Vehicle expenses (mileage, gas, repairs)
- Public transportation for business purposes
Are you self-employed or employed by the business?
For transportation expenses to be deductible, they must be ordinary and necessary for your business. Here are some common deductible transportation expenses:
- Business-related travel (e.g., client meetings)
- Vehicle expenses (mileage, gas, repairs)
- Public transportation for business purposes
Are you self-employed or employed by the business?
yes
Case Rating: *
If you are self-employed and use your vehicle or other transportation for business purposes, you can generally deduct those expenses. Remember to keep detailed records of your business travel.
Would you like more information on specific tax deductions or any other legal questions?
If you are self-employed and use your vehicle or other transportation for business purposes, you can generally deduct those expenses. Remember to keep detailed records of your business travel.
Would you like more information on specific tax deductions or any other legal questions?
If I took the train to work may I expense that?
Case Rating: *
In general, commuting expenses between your home and your regular place of work are not deductible. However, if you travel to a temporary work location or for business purposes, those costs may be deductible.
Is there anything specific you'd like to know about transportation deductions?
In general, commuting expenses between your home and your regular place of work are not deductible. However, if you travel to a temporary work location or for business purposes, those costs may be deductible.
Is there anything specific you'd like to know about transportation deductions?
I had to take public transportation to work, is that deductible?
Case Rating: *
Commuting expenses between your home and your regular place of work are generally not deductible. However, if you travel to a temporary work location or for business purposes, those expenses may be deductible.
Commuting expenses between your home and your regular place of work are generally not deductible. However, if you travel to a temporary work location or for business purposes, those expenses may be deductible.
May I claim a babysitter I paid in cash on my taxes?
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For claiming a babysitter as a tax deduction in New York:
- You can claim childcare expenses if they are necessary for you to work or look for work.
- You need to provide the babysitter's Social Security number and report the payments on your tax return.
- Payments made in cash should still be documented.
Do you have any other specific questions about this topic?
For claiming a babysitter as a tax deduction in New York:
- You can claim childcare expenses if they are necessary for you to work or look for work.
- You need to provide the babysitter's Social Security number and report the payments on your tax return.
- Payments made in cash should still be documented.
Do you have any other specific questions about this topic?
how can I get rid of 6K in NY state taxes? What can I deduct as a small business partner
Case Rating: *
To address your $6K New York State tax liability as a small business partner, consider the following deductions:
- Business expenses (e.g., office supplies, business travel)
- Home office expenses
- Health insurance premiums (if self-employed)
- Professional services (e.g., legal and accounting fees)
- Retirement plan contributions
Would you like more details on any of these deductions?
To address your $6K New York State tax liability as a small business partner, consider the following deductions:
- Business expenses (e.g., office supplies, business travel)
- Home office expenses
- Health insurance premiums (if self-employed)
- Professional services (e.g., legal and accounting fees)
- Retirement plan contributions
Would you like more details on any of these deductions?
If I moved for a job and the business closed can I get a tax break?
Case Rating: *
Generally, moving expenses for a job are not deductible on federal taxes, as the deduction was eliminated in the Tax Cuts and Jobs Act of *. However, New York State may have different rules.
- Moving expenses to start a new job outside of the federal deduction may still apply if it was before *.
- Check if New York State allows deductions for moving expenses under state tax law.
Do you have any additional details or questions about your situation?
Generally, moving expenses for a job are not deductible on federal taxes, as the deduction was eliminated in the Tax Cuts and Jobs Act of *. However, New York State may have different rules.
- Moving expenses to start a new job outside of the federal deduction may still apply if it was before *.
- Check if New York State allows deductions for moving expenses under state tax law.
Do you have any additional details or questions about your situation?
In a partnership agreeement is the majority owner obligated to tell the minority owner if they decide they want to close the business before they make a decision?
Case Rating: *
In a partnership, the obligations of the majority owner to notify the minority owner about closing the business depend on the terms specified in the partnership agreement. Generally:
- Review the partnership agreement for any clauses requiring notice or consent from minority owners.
- New York law may not mandate notification unless specified in the agreement.
Do you have any specific details about the partnership agreement that might address this issue?
In a partnership, the obligations of the majority owner to notify the minority owner about closing the business depend on the terms specified in the partnership agreement. Generally:
- Review the partnership agreement for any clauses requiring notice or consent from minority owners.
- New York law may not mandate notification unless specified in the agreement.
Do you have any specific details about the partnership agreement that might address this issue?
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