Explore our comprehensive LLC Year-End Checklist designed for CPAs, covering essential financial, regulatory, and planning activities for smooth operations.
1
Review accounting records for accuracy
2
Finalize financial statements
3
Calculate net income or loss
4
Determine member distributions
5
Prepare K-1 forms for members
6
Submit payroll reports
7
Ensure all state taxes are paid
8
File Annual Report
9
Prepare and file federal tax return
10
Approval: Tax Return
11
Confirm all obligations to creditors are satisfied
12
Review and update operating agreement
13
Approval: Updated Operating Agreement
14
Review and record asset acquisitions or dispositions
15
Maintain minutes of annual meeting
16
Confirm proper insurance coverage
17
Create a budget for following year
18
Review lease agreements
19
Plan for future capital needs
20
Secure and store important documents
Review accounting records for accuracy
Check all financial records and transactions for accuracy and completeness. Ensure that all entries are properly categorized and posted. Verify that all supporting documentation is attached and organized. Identify any discrepancies or errors and address them promptly. This task is crucial as it forms the foundation for all subsequent financial statements and reports.
1
Bank statements reconciliation
2
General ledger
3
Trial balance
4
Accounts payable
5
Accounts receivable
Finalize financial statements
Compile and organize all financial data to generate accurate and comprehensive financial statements. The financial statements should include the balance sheet, income statement, and cash flow statement. Verify the accuracy of calculations and ensure compliance with relevant accounting standards. Finalizing the financial statements provides a clear snapshot of the company's financial position and performance.
Calculate net income or loss
Determine the net income or loss by subtracting the total expenses from the total revenue. Analyze the income statement to identify any significant trends or deviations from previous periods. Understanding the company's profitability is essential for making informed decisions and planning for the future.
Determine member distributions
Review the operating agreement to determine how profits and losses are allocated among the members. Calculate each member's share of the distributions based on their ownership percentage. Ensure compliance with the terms outlined in the operating agreement and document the distributions for future reference.
Prepare K-1 forms for members
Generate K-1 forms for each member of the limited liability company. The K-1 form reports each member's share of the company's income, deductions, and credits. Distribute the K-1 forms to the members in a timely manner to allow for the completion of their individual tax returns.
1
Member's name
2
Member's address
3
Percentage of ownership
Submit payroll reports
Compile and submit accurate payroll reports to the appropriate authorities. Ensure that all necessary payroll taxes, such as federal income tax withholding and FICA taxes, are properly calculated and remitted. Timely and accurate submission of payroll reports helps to avoid penalties and maintain compliance with legal requirements.
1
Quarterly payroll tax return
2
Form W-2
3
Form 941
Ensure all state taxes are paid
Verify that all state taxes, such as sales tax, income tax, and franchise tax, are paid in full and on time. Review the state tax requirements and filing deadlines to ensure compliance. Keep track of the payments and supporting documentation for future reference.
1
Sales tax
2
Income tax
3
Franchise tax
File Annual Report
Prepare and file the annual report with the appropriate state agency. Ensure that all required information, such as the company's address, ownership details, and business activities, is accurately reported. Comply with the filing deadline to avoid penalties and maintain good standing with the state.
Prepare and file federal tax return
Prepare the federal tax return for the limited liability company. Gather all necessary financial records, tax forms, and supporting documentation. Accurately calculate the taxable income and fill out the relevant schedules and forms. File the tax return by the deadline to avoid penalties.
Approval: Tax Return
Will be submitted for approval:
Prepare and file federal tax return
Will be submitted
Confirm all obligations to creditors are satisfied
Review outstanding debts and obligations to ensure they are properly accounted for and reconciled. Verify that all payments to creditors, such as loans, credit cards, and vendor invoices, are up to date. Address any overdue payments or discrepancies promptly to avoid damaging relationships and potential legal consequences.
1
Loans
2
Credit cards
3
Vendor invoices
Review and update operating agreement
Review the operating agreement to ensure it accurately reflects the current members, ownership percentages, and distribution rules. Update the agreement as needed to reflect any changes or amendments. A well-drafted and up-to-date operating agreement provides clarity and prevents potential conflicts among the members.
Request operating agreement
Approval: Updated Operating Agreement
Will be submitted for approval:
Review and update operating agreement
Will be submitted
Review and record asset acquisitions or dispositions
Review any recent acquisitions or dispositions of assets and update the company's records accordingly. Verify that the asset purchase or sale was properly documented and recorded. Determine the impact of these transactions on the financial statements and update any relevant schedules or depreciation calculations.
1
Asset acquisitions
2
Asset dispositions
Maintain minutes of annual meeting
Prepare and maintain detailed minutes of the limited liability company's annual meeting. Document discussions, decisions, and any significant events during the meeting. Minutes provide an official record of the company's activities and can be used for reference and compliance purposes.
Confirm proper insurance coverage
Review the company's insurance policies to ensure they provide adequate coverage for potential risks and liabilities. Evaluate the coverage limits, deductibles, and exclusions. Make any necessary adjustments or consider additional coverage based on the company's current needs and potential future risks.
1
General liability
2
Property
3
Workers' compensation
Create a budget for following year
Prepare a comprehensive budget for the next fiscal year based on projected revenues and expenses. Analyze historical data, market trends, and business goals to create realistic and achievable budget targets. Set specific financial targets and measures to monitor the company's performance throughout the year.
Review lease agreements
Analyze existing lease agreements to ensure compliance with terms and conditions. Verify lease expiration dates and negotiate renewals or terminations as necessary. Consider market conditions and evaluate the leasing terms to optimize the company's real estate or equipment leasing strategies.
1
Real estate leases
2
Equipment leases
Plan for future capital needs
Assess the company's capital requirements for future growth and expansion. Identify potential funding sources, such as equity, debt, or grants. Develop a strategic plan for obtaining the necessary capital, including timelines and milestones. Incorporate the capital plan into the overall financial strategy of the company.
1
Equity financing
2
Debt financing
3
Grant funding
Secure and store important documents
Establish a system for securing and storing important company documents in a safe and organized manner. This includes financial records, tax returns, contracts, and legal documents. Implement appropriate security measures, such as passwords and encryption, to protect sensitive information. Regularly back up the documents to ensure their availability and integrity.
