Hello,
Started our 2-member LLC rental business this year and use Stessa for all my income and expenses. All expenses are paid by credit card or checks. How important will be sending 1099s as many of these vendors are a company.
What other software for accounting or tax purposes would be good to look at? We have been using Turbo Tax Online for our personal returns for a long time.
Thank you
JP
@jaiminswita Good morning. By starting a 2-member LLC - you have most likely formed a partnership - which requires different tax forms, different tax deadlines, generally require a balance sheet, require the issuance of K-1 forms to the partners, among other things. Highly recommend you start a relationship with a tax professional to navigate these waters.
Stessa is single-entry accounting, which cannot properly handle a balance sheet, even though they have a ‘balance sheet’ report - it is flawed. A proper balance sheet requires double-entry accounting, something like QuickBooks, Xero, etc.
1099s are also a critical compliance measure. The hardest part is collecting the W9 when establishing a relationship with a vendor - collecting a completed form before work begins! Issuing of the forms is easily performed by many services online - just search the internet and you’ll get a dozen hits.
Hope this helps!
-Tom
www.realcentsorganized .com
Please note that this post and any information shared or discussed here are for informational and entertainment purposes only.
I am not a licensed tax professional, certified public accountant (CPA), or financial advisor. The content provided does not constitute and should not be relied upon as professional tax, accounting, legal, or financial advice.
For advice specific to your unique business situation, you should always consult with a qualified, licensed professional.
Thank you, @tlatuga, for detailed response.
I looked into QuickBooks Online. Wondering if there are simpler and more rental business specific software that anyone here is using. Would be nice to have integration with Stessa to avoid any double entry.