LLCs that have crypto disposals in a given tax year will need Form 8949 to include in their yearly tax filings. Generating Form 8949 as an LLC will feel very familiar if you've used TaxBit as an individual, but there are a few extra considerations LLC users need to keep in mind when using our platform.
For a general guide on how to use TaxBit, applicable to both individual and LLC users, check out our guide HERE.
In this article:
LLC users and the 8949 form
If you’re an LLC user, it’s important to know TaxBit might not be your one-stop shop for crypto tax compliance. LLCs with crypto disposals will need a Form 8949 to represent those gains or losses, but there may be other documents you need to provide to fully represent your crypto transaction history to the IRS.
We encourage our LLCs users to speak with a tax professional to check whether other forms, besides Form 8949, will need to be filed as a result of your crypto dealings.
When you’re setting up a TaxBit account for an LLC, make sure the name that’s displayed on your Form 8949 matches the name on the exchange accounts where those transactions come from. This is important; the exchange will be issuing Form 1099 to the IRS under the name on the exchange. In the case of an LLC, the name on those exchange accounts should not be the name of an individual; it should be related to the name of the LLC.
To better understand what Form 8949 is and the purpose it serves, check out our article HERE.
Keeping your personal and business crypto separate
To save you unnecessary complexity when preparing your crypto taxes, it's really important to keep your personal and business crypto transactions separate, Create separate TaxBit accounts for each. As a best practice, you should use dedicated exchange accounts and wallets when interacting with crypto owned by an LLC, and not allow the crypto from your personal and business accounts to mix together.
There are some instances where you'll want to move crypto between your personal and business accounts intentionally. In those instances, please reach out to our support team for guidance specific to your situation, so you can best represent those transactions in both your personal and business transaction data.
Still have questions? Send us an email at firstname.lastname@example.org, or chat with us using our live chat feature, and we'd be happy to help!