Legal Question in Tax Law in New York

Quarterly filings for LLC?

Hello!

I was half of a partnership in the form of a llc that came into existance in July 2003. I left the company in Feb. 2004.

I know that taxes are to be paid quarterly on a llc, but how are the dates for those quarters determined? Am I liable to pay taxes for both of those quarters or only for the one in which I was still a full partner?

My ex-partner has asked that I pay for the full tax liability which makes very little sense to me as I am no longer part of the company. Why would I pay taxes on a second quarter for something I do not own?

What is a K1 form and do I need to file one even though I am no longer a partner in the company?

I understand that these questions may seem simple, but I have searched the IRS website and have gotten nowhere. I am cash poor as the business took most of my savings and income. I would be forever grateful for any knowledge.


Asked on 4/13/04, 3:13 am

1 Answer from Attorneys
Anthony Park Anthony S. Park, PLLC

Re: Quarterly filings for LLC?

First, you sound a litle confused as to the tax issues. Generally, only sales and employee withholding taxes are due quarterly. Most partnerships do not have their own income, as the income flows directly through to the partners.

You should have received a K-1 from the LLC's accountant or tax attorney. This form tells you your share of profits and losses from the LLC for 2003 that you must report on your 2003 individual income tax return. You should also receive a K-1 for Jan and Feb of 2004.

Partnership tax is very complicated, and I urge your to consult an accountant or tax attorney before you proceed. Also, you should speak with an attorney about your leaving the LLC. If you did not dispose of your LLC interest properly, you could still be exposed to liability. You can email me at [email protected].

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Answered on 4/13/04, 9:44 am


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