Rehabilitation Center for the Blind and Visually Impaired
2601 SW East Circle Drive North
Topeka, Kansas 66606
785-296-3311

March 2007

Program Update

Bill Dain, KVF Manager for the Landon State Office Building Cafeteria, Dresses for Success: Bill recently purchased chef jackets for his employees which gives the cafeteria a fresh new look. The cafeteria will be getting a face lift, compliments of the Division of Facility Management, with new carpet in the dining area later this month. New tile and Formica will be coming later this year.

Growing Pains at the Environmental Protection Agency (EPA) Part III: The “Market Place,” KVF #12 managed by Jim White, completes its new look with a new cashier’s island for better customer service.

New Location in Wichita: Phillip Carr, Manager for KVF #78, began serving the Sedgwick County Juvenile Court Building February 21, 2008. The Juvenile Court Building located at 1900 E. Morris in Wichita, has approximately 70 county employees. One pop and one snack machine, both of which were available without purchasing any equipment, were placed at this location. The closest source of drinks and snacks is a convenience store that is about 2.5 blocks away. The employees in the building have limited time to leave the building and rely on the vending machines. This location is within a mile or two of Phillip’s other small locations such as the IRS, Emergency Call Center, and the U.S. Postal Center at 2nd and Waco, and will easily fit within his route because of the close proximity.

BEP Accounting Services Update: Since it is tax time, George Myers would like to pass along the following information from his second job with H&R Block.

Can a husband and wife run a business as a sole proprietor or do they need to be a partnership?

It is possible for either the husband or the wife to be the owner of the sole proprietor business. When only one spouse is the owner, the other spouse can work in the business as an employee. If a married couple who file a joint tax return elect to conduct their business activities as a qualified joint venture, (a trade or business entity in which the husband and wife materially participate in such venture), the spouses must divide the items of income, gain, loss, deduction, credit and expenses in accordance with their respective interests in such venture.

For more information see Election for Husband and Wife Unincorporated Businesses This is effective for taxable years beginning after December 31, 2006. Also, see Rev. Proc. 2002-69 for Special Rules for Spouses in Community States.

References:

Publication 334, Tax Guide for Small Business
Publication 541, Partnerships
Taxpayer Protection Act of 2007

For IRS purposes, how do I classify a limited liability company? Is it a sole proprietorship, partnership, or corporation?

A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for Federal income tax purposes as if it were a sole proprietorship (referred to as an entity disregarded as separate from its owner), a partnership, or a corporation. If the LLC has only one owner, (see Publication 555, on community property states), it will automatically be treated as if it were a sole proprietorship (a disregarded entity), unless an election is made for it to be treated as a corporation. If the LLC has two or more owners, it will automatically be treated as a partnership unless an election is made for it to be treated as a corporation. If the LLC does not make a classification election, a default classification of partnership (multi-member LLC) or disregarded entity (single-member LLC) will apply. The election referred to is made using the Form 8832 (PDF), Entity Classification Election. If a taxpayer does not file Form 8832 (PDF), a default classification will apply.

References:

Publication 3402 (PDF) Tax Issues For Limited Liability Companies Publication 334, Tax Guide for Small Business
Tax Topic 103, Small Business Tax Education Program
Publication 542, Corporations
Publication 541, Partnerships

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Page last updated March 2007 .