Can the IRS seize an LLC for personal taxes?
Can the Irs Seize a business which is an LLC for non payment of personal property taxes? We do not own a home and have no bank accounts. No retirement, savings, investments. All we have is a small business in a rented building.
Sorry, I meant personal income tax, not property tax. My mistake.
Comments (3)
If you are the sole owner, then most certainly yes. The main advantages of an LLC are right in the title: “limited liability corporation” which shields you personally from being financially responsible in the case of a lawsuit against the company by a harmed customer and also shields you from being personally responsible for the company’s private debts. While there are tax advantages in certain situations with an LLC, This is not a shield against tax evasion or unpaid tax bills. There is virtually nothing short of death that can save you from the consequences of those two. Not even full bankruptcy saves you from those.
Of course I am not an attorney, tax adviser or accountant so you should speak with one of them. I am just a small business owner.
IRS cannot seize a business for nonpayment of personal property taxes because IRS does not collect personal property taxes.
Combine those two answers you have above and you have an excellent answer.
Can the government seize a business as an asset? Sure.. but they really want cash – they don’t want to have to put your businesses’ assets up for auction and spend money in the hopes of making money? Seizing furniture and the like is a last resort.
The IRS collects income taxes, not personal property tax. State tax boards are the ones that usually collect property taxes – and in some states, it is actually the individual cities that have a city business tax based on personal property.