Can You Have a General Partner in an LLC?

Due to their adaptability in terms of taxation and organizational structure, Limited Liability Companies (LLCs) have gained popularity. But whether an LLC can have a general partner is one issue that frequently comes up. Yes, an LLC can have a general partner, but then it wouldn’t be a pure LLC anymore.

With the adaptability of a partnership and the restricted liability of a corporation, an LLC is a hybrid company form. LLCs are typically run by their members, who also hold ownership stakes in the business. Yet another option for managing LLCs is by a manager or group of managers who are not members. The LLC in this instance is referred to as a manager-managed LLC.

An LLC is categorized as a limited partnership (LP) if it has a general partner. General and limited partners are the two sorts of partners in a limited partnership. The limited partners’ liability is restricted, whereas the general partner’s liability for the partnership’s debts and obligations is unlimited. The liability of limited partners is capped at the amount of their partnership investment.

You can deduct a range of company expenses on your tax return if you run an LLC. These cover things like office costs, equipment costs, travel costs, advertising costs, and more. The IRS permits LLC owners to write off “ordinary and necessary” business-related expenses.

It’s crucial to maintain thorough records of all of your business expenditures during the course of the year, including any receipts or invoices. It will be simpler to claim deductions on your tax return as a result.

You might need to send them a 1099 form at the end of the year if your LLC earns income from a client or customer. This is valid if the client paid your LLC a total of $600 or more during the course of the year.

A 1099 form must also be given to everyone your LLC paid for services throughout the year who received payments of $600 or more. Payments provided to independent contractors, freelancers, and other non-employees fall under this category.

The answer is that you must still file a tax return even if your LLC had a loss for the year. This is so because an LLC is viewed by the IRS as a distinct legal entity from its owners. As a result, even if the LLC had no income, it was still required to file its own tax return.

Kansas Retailers Compensating Use Tax: What is it?

The use of tangible personal property that was bought outside of Kansas is subject to the Kansas Retailers’ Compensating Use Tax. This tax is intended to level the playing field between companies who make in-state purchases of goods and those that make out-of-state purchases.

The Kansas Retailers’ Compensating Use Tax is levied at the same rate as the state’s current 6.5% sales tax. The Kansas Department of Revenue must receive a use tax return from companies that are subject to this tax.

An LLC can have a general partner, but then it is no longer regarded as a pure LLC. You may be obliged to give clients or contractors a 1099 form if you run an LLC, and you can deduct a range of company expenses on your tax return. You must still file a tax return even if your LLC was profitable for the whole tax year. The use of tangible personal property that was bought outside of Kansas is subject to the Kansas Retailers’ Compensating Use Tax.