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Can I write my own CPA letter? The borrower can write the letter, but lenders require an official document, prepared and signed by a CPA or tax preparer.
Although being taxed like an S corporation is probably chosen the least often by small business owners, it is an option. For some LLCs and their owners, this can actually provide a tax savings, particularly if the LLC operates an active trade or business and the payroll taxes on the owner or owners is high.
What is an Income Verification Letter? This is a letter that verifies your annual income and employment information. The applicant's CPA issues this letter to the lender for consideration during the loan application process.
Disregarded entities are the simplest tax classification with straightforward tax reporting. Your LLC is not taxed or required to file a tax return. Instead, the business profits and losses pass to you as the sole owner to be reported on your personal income tax return.
It's important to start the letter with a few facts about the CPA you're writing about to convey their name and current job title. Another detail to add is the purpose of the letter, whether it's for a job application , a prospective client or admission to a university.