What can I deduct for LLC Franchise

[Marchell]

JaniKing Franchise LLC

What deductions 

[Just-Lisa-Now-]

what expenses did the business have?

[Marchell]

Can client claim regular deductions such as Finders Fees, Royalty?

Can client claim special deductions such as advertising fee, client sales tax and business protection plan?

[Marchell · Accepted solution]

Just-Lisa-Now,

Customer has regular deductions such as royalty, business support fee, FF IB Projected Payment and Finders Fee.

They also have Business protection plan, Client sales tax, etc. 

This is my first Franchise customer. I use ProSeries Basic and am not sure where to find information regarding JaniKing Franchises.

Marchell

[qbteachmt]

Have you ever done a Business Tax Return? Do you know the entity type? What are these: "business support fee, FF IB Projected Payment and Finders Fee. They also have Business protection plan"

And, because you mention: "Client sales tax"

That is not a business deduction, if you mean the sales tax charged to customers, then paid to the sales tax agency by your client.

[Marchell]

I have completed many Schedule Cs but this is my first franchise and my customer is not sure of the categories. I've been looking around to see where I can find information regarding franchises.

Thanks. It's just nice to have someone out here to discuss.

I'm a mom and pop tax service. And this is one of those last minute customers.

[Just-Lisa-Now-]

I dont know what JaniKing is or does, you keep referring to it like its something special.

Is there something that makes it different than any other business? What type of entity is it?

[qbteachmt]

It's a janitorial franchise. Geez, one of the fees is for Technology and one is for Accounting. That means they should be presenting some financial reports to the tax preparer.

You have to know how some of these fees apply (translate their name into real business tax return terminology), such as is "business protection plan" an Insurance policy? Someone signed the paperwork and should have an idea. Finders Fee might be a Commission for every client sent to your taxpayer, so you would need to watch for 1099-Misc requirements, for example.

https://www.franchisedirect.com/cleaningfranchises/jani-king-commercial-cleaning-services-franchise-...

Other than being Franchise, a business is just a business

[Marchell]

qbteachmt,

Thank you for the link. This is very helpful. My customer does not have his act together as far as paperwork. I'll decide if I want to continue working with him. I don't really have time to teach him how to take care of his paperwork.

Sincerely,

Marchell, 

Tired about now.

[qbteachmt]

"I don't really have time to teach him how to take care of his paperwork."

That's what my school does, and we also have business development support funded by SBA and the State.

You could recommend to put him on extension and explain why and what he needs to do meanwhile, to meet his next deadline. I would guess there might be some sort of crew, so there should be someone running payroll for the rest of the crew, and someone pays bills, and...

[Jim-from-Ohio]

I have a Jani-King client.. they should be able to provide you a one page summary of each month's activity. 

[Marchell]

Can they deduct Finders Fees?

[Jim-from-Ohio]

Yes

[qbteachmt]

"Can they deduct Finders Fees?"

Are they following the 1099-Misc requirements? It's pretty costly not to be in compliance.

https://turbotax.intuit.com/tax-tips/small-business-taxes/penalties-for-not-filing-a-1099-misc-irs-f...

[Jim-from-Ohio]

These are not finders fees that the franchisee pays out of their checkbook.. These are finders fees that the franchisor charges the franchisee and come out of the franchisee's monthly revenue deposited to them.

[qbteachmt]

Okay, that's like a corporate referral program, then. Thanks.