I started my LLC and just found out I need to file personal property form. I am a seamstress, does that mean my machines that I own and my computer?
2007-03-19 05:35:47 · 5 answers · asked by gloroll 1 in Business & Finance ➔ Taxes ➔ United States
Unless you
(a) purchased the machines and the computer "in the LLC", i.e. with an LLC check or cash which you withdrew from the LLC bank account or
(b) contributed the machines and computer to the LLC as part of your "investment" in the LLC
the machines and computer does not belong to the LLC.
They belong to you and are personal property.
If you DO NOT want to list this equipment as personal property then you may "contribute" them to the LLC as investment and have them listed as assets of the LLC with their value assigned to your account in the LLC.
If you are the only member of the LLC then the LLC does not really provide you with any protection against creditors if they find out that you are the only member. A single member LLC is no different from a sole proprietorship for legal purposes. In this case, you may have to list the equipment as your personal property regardless of whether they are in the LLC or not.
2007-03-19 05:50:43 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Personal property are assets you use in your business and can take with you away from the real estate (building and its fixtures). So your machines, computers, and furniture are examples of (business use) personal property.
Your inventory is not personal property. You are holding that for sale. Any item that you own that is for personal use, not business use, is not personal property for the LLC.
2007-03-19 05:50:39 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
If the machines and computer that you own are also used for business purposes, then yes, they belong on your personal property tax return, but only to the extent that is used for business.
The value that you report for depreciable basis on Form 4562 is the same value you would report on your personal property tax return.
Generally speaking, personal property includes, office furniture, office machines, computers and peripheral equipment, word processors,
and any other equipment that is used directly with the manufacture or
distribution of your major source of revenue.
2007-03-19 08:36:46 · answer #3 · answered by bold4bs 4 · 0⤊ 0⤋
There are 2 types of property, real and personal. Real property is real estate. Personal property are things like your computer and sewing machines.
2007-03-19 05:39:58 · answer #4 · answered by R Worth 4 · 1⤊ 0⤋
Anything that is not real property (real estate) is personal property.
2007-03-19 05:42:06 · answer #5 · answered by Bostonian In MO 7 · 1⤊ 0⤋