Management Company Tax Compliance (Investment Manager) – Partial Payment & Minimum Price

Whether you receive advisory fees, profit allocation or both, we can add value to your management company tax returns.

Price $995.00
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This payment is a partial payment and minimum price for our tax compliance (planning/preparation) service for your management company entity's federal and state tax returns. Expect a balance due when we complete the engagement. Please read Price & Billing Policies for more information.

Choose this service if you had an LLC (limited liability company) or C-Corp that filed an S-Corp election on time and received an IRS letter granting S-Corp status. LLCs can file S-Corp elections by March 15 or within 75 days of inception. This service is also for multi-member LLCs taxed as a partnership or management companies taxed as a C-Corp.

We suggest you also sign up for our individual tax compliance service because important matters — including officer's compensation (S-Corps) or guaranteed payments (partnerships), pass-through of Schedule K-1 income, loss and expense and reporting tax liability or use of net losses — are all applied on your individual tax returns.

Other items to consider with pass-through entities:

  • A partnership passes through earned income to owners causing SE (self-employment) tax, whereas an S-Corp does not. An S-Corp with earned income activity needs to pay reasonable compensation to officer/owners.
  • A partnership can have special allocations whereas an S-Corp cannot.
  • Advisory fees are earned income, but carried interest of portfolio income including capital gains retains its character.
  • Some managers also trade in their management companies, so we address trader tax status and tax treatment elections as well.

Items to consider with C-Corps:

  • C-Corps can elect fiscal year-ends other than a calendar year-end. The C-Corp tax return or extension is due 2.5 months after the fiscal year-end.
  • C-Corps are not pass-through entities and taxes are owed on the C-Corp entity level.
  • We suggest you also sign up for our individual tax compliance service as we apply significant matters on your individual tax returns including officer's compensation and dividends.
  • To avoid Obama-era top individual tax rates (up to 44% including the Net Investment Tax), we may recommend C-Corps to take advantage of their lower tax brackets. The C-Corp operates as your management company, or it houses intellectual property and charges management fees or royalties to your hedge fund or main management company.
  • A C-Corp offers a wider variety of employee benefit plans vs. a pass-through entity.

Visit our Investment Management section to learn more.

If you have any questions, please contact us soon.

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