How does Dermani Medspa handle income taxes as a limited liability company?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024
NOTE 1 - BUSINESS AND ORGANIZATION
dermani MEDSPA Franchising, LLC, a single member Florida limited liability company (the Company) was originally formed under the laws of the state of Georgia on January 16, 2019. On March 25, 2022, the Company filed Articles of Conversion in accordance with Florida Statues s.605.1045. The trademark name "dermani MEDSPA®" was originally acquired in 2014 by the Member's owners and was transferred to the Company effective April 22, 2019 by a Trademark and System License agreement. The Company's planned principal operations is the franchising of dermani MEDSPA centers that will provide clients with laser hair removal, skin rejuvenation, chemical peels, dermaplaning, injections, and other products.
As of December 31, 2024, there were twenty two franchise centers in operation.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The financial statements of the Company are presented using the accrual basis of accounting whereby revenues are recognized when they are earned, and expenses are recognized when they are incurred. The Company follows accounting principles generally accepted in the United States of America.
Estimates and Assumptions
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Source: Item 23 — RECEIPTS (FDD pages 66–311)
What This Means (2025 FDD)
Based on the 2025 Dermani Medspa Franchise Disclosure Document, the franchisor, dermani MEDSPA Franchising, LLC, is structured as a single-member Florida limited liability company. The FDD notes that the company was originally formed in Georgia on January 16, 2019, and later filed Articles of Conversion in Florida on March 25, 2022.
The financial statements of Dermani Medspa Franchising, LLC, are prepared using the accrual basis of accounting, where revenues are recognized when earned and expenses when incurred, following accounting principles generally accepted in the United States of America. The company's management makes estimates and assumptions that affect the reported amounts of assets and liabilities, and actual results could differ from these estimates.
However, the FDD does not explicitly detail how individual franchisees, who may also operate as limited liability companies, should handle their income taxes. It is typical for LLCs to have pass-through taxation, where profits and losses are passed through to the owners and reported on their individual income tax returns. Prospective Dermani Medspa franchisees should consult with a tax professional to understand the specific tax implications of operating a franchise as an LLC, as the FDD does not provide this information.