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FVH
Level 1

How to handle the annual LLC fee

How should the annual LLC fee of $800 and $6,000 to the FTB be categorized in QB?  Do these expenses affect the P & L and are they tax deductible?  

Solved
Best answer October 15, 2018

Best Answers
IRMN
Level 2

How to handle the annual LLC fee

Code it to an account called "licenses and fees", or something along that line.  Yes, they do affect the P&L.  If they are an annual fee, yes they are tax deductible.

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5 Comments 5
IRMN
Level 2

How to handle the annual LLC fee

Code it to an account called "licenses and fees", or something along that line.  Yes, they do affect the P&L.  If they are an annual fee, yes they are tax deductible.

View solution in original post

FVH
Level 1

How to handle the annual LLC fee

Thank you very much for your reply!  Would a late fee to the FTB be handled/categorized the same way?  Also how would a personal tax payment to the IRS and the FTB for a single member LLC be handled that came out of the company account?
IRMN
Level 2

How to handle the annual LLC fee

You're welcome.  Late fees/penalties to a government organization are not tax deductible so they would not be handled the same way.  A personal tax payment would be recorded as an owner's draw.
FVH
Level 1

How to handle the annual LLC fee

One last thing...how do you suggest we handle the late fee in terms of categorizing?  Thanks so much!!!
IRMN
Level 2

How to handle the annual LLC fee

Penalties

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