U.S. accountant for LLC

For U.S. business owners and LLC founders, understanding the accounting and tax landscape is crucial for compliance and financial health.Federal Classification and Tax Filing for LLCsBy default, a single-member LLC is treated as a disregarded entity, meaning the owner reports business income and expenses on their personal tax return using Schedule C (Form 1040). Multi-member LLCs are typically classified as partnerships, filing Form 1065 and issuing Schedule K-1 to each member. LLCs have the flexibility to elect corporate tax treatment by filing Form 8832, or S-corporation status using Form 2553 if eligible. Key federal forms include Schedule C, Schedule SE (for self-employment tax), Form 1065, Schedule K-1, Form 1120 or 1120-S (for corporate elections), Form 8832, Form 2553, and Form 1040-ES for estimated tax payments.Employment Taxes, Payroll, and ContractorsIf your LLC has employees, you must withhold and deposit payroll taxes, file federal employment returns (Forms 941, 940, 944), and adhere to IRS Publication 15 guidance. Correctly classifying workers as W-2 employees versus 1099 contractors is vital to avoid payroll tax issues. Owner-members often need to make quarterly estimated tax payments via Form 1040-ES, especially if their income isn't subject to withholding. Single-member LLC owners also pay self-employment tax through Schedule SE.Sales and Use Tax & NexusFollowing the South Dakota v. Wayfair decision, states can require remote sellers to collect sales tax. Businesses must determine if they have sales tax nexus (economic or physical presence) in a state and register to collect taxes there. Resources like the Streamlined Sales Tax Governing Board and state Departments of Revenue provide guidance on registration and compliance.Practical Bookkeeping and Accounting Best PracticesMaintain separate business bank accounts and credit cards, distinct from personal finances. Establish a general ledger with a consistent chart of accounts (assets, liabilities, equity, revenue, expenses) and use double-entry bookkeeping for accuracy. Regular reconciliation of bank and credit card statements is essential. Choose appropriate accounting software such as QuickBooks Online, Xero, or FreshBooks, and integrate payroll or POS/tax automation as needed. Keep detailed records, digitize receipts, and retain documents for 3-7 years for tax and audit purposes. Your choice of accounting method (cash vs. accrual) depends on business size and tax rules, with some businesses mandated to use accrual. Proper capitalization versus expensing, depreciation, and fixed asset tracking are also important for tax reporting.When to Hire a CPA vs. a BookkeeperBookkeepers handle daily transactions, reconciliations, accounts payable/receivable, and basic financial reports. Certified Public Accountants (CPAs) offer more strategic services, including tax planning and filing, complex tax elections (like S-corp), financial statement preparation, audit representation, and multi-state tax issues. Consider hiring a CPA for tax optimization, multi-state compliance, entity elections, audit support, or complex payroll/benefits. Fees vary widely based on complexity and location.Practical Deliverables from an Accountant/CFO ServiceAn accountant can provide monthly reconciled financial statements (P&L, balance sheet, cash flow), assist with payroll setup and filings, support quarterly estimated tax calculations, prepare annual tax returns, manage sales tax registration and returns, and help establish a multi-state compliance calendar.Actionable Checklist for LLC Owners1. Form your LLC correctly and obtain an Employer Identification Number (EIN).2. Open separate business bank accounts.3. Create an operating agreement.4. Register for state sales tax and withholding where necessary.5. Set up payroll and classify workers properly.6. Choose accounting software and establish a chart of accounts.7. Implement regular bank/credit card reconciliations and monthly financial reviews.8. Determine federal tax classification and consider an S-corp election if appropriate.9. Establish a compliance calendar for federal, state, and local filings (annual/biennial reports, franchise taxes, sales tax, payroll deposits and returns, estimated taxes).State-Specific Compliance Highlights (Examples)* California (Franchise Tax Board): Every LLC doing business or organized in California must pay an $800 annual tax. LLCs with total California income exceeding $250,000 also pay an additional fee, ranging from $900 (for income $250K-$499,999) to $11,790 (for $5M+). The first-year tax is due by the 15th day of the 4th month after filing with the Secretary of State. A Statement of Information must be filed with the CA SOS to maintain active status.* Texas (Comptroller): Texas imposes an annual franchise tax, with the annual report due by May 15. The no-tax-due threshold is $2,650,000. Tax rates are 0.375% for retail/wholesale businesses and 0.75% for others.* Florida (Sunbiz / Division of Corporations): Annual reports are required to maintain active status. The filing window is typically before May 1, after which a $400 late fee may be assessed. Failure to file by the third Friday of September can lead to administrative dissolution. The annual report fee for an LLC is $138.75 (including online service fee).* New York (Department of State): New York LLCs must file a biennial statement by the end of their registration anniversary month, with a small filing fee (e.g., $9).* Illinois and Other States: Annual or biennial filing rules and fees vary significantly by state. Always consult individual state Department of Revenue or Secretary of State pages for the most accurate and up-to-date information.