How do I do my own LLC taxes?

How do I do my own LLC taxes?

To submit taxes as a single-member LLC you’ll file Schedule C with your personal income tax return. On Schedule C you’ll report the income and expenses from your business. That amount will then be included as income or loss on your personal tax return Form 1040.

What taxes do you pay with an LLC?

An LLC is typically treated as a pass-through entity for federal income tax purposes. This means that the LLC itself doesn’t pay taxes on business income. The members of the LLC pay taxes on their share of the LLC’s profits. State or local governments might levy additional LLC taxes.

What kind of taxes do I have to pay as a LLC?

You’ll also have to report and pay Social Security and Medicare tax (i.e. your self-employment taxes) using Schedule SE. The LLC files Form 1065 to report the business income or loss to the IRS, then gives each member of the LLC a Schedule K-1, which is used to report their share of the LLC’s income and deductions on their personal tax returns.

How are LLCs classified in the tax code?

An LLC is classified by default as either a disregarded entity (for single-member LLCs) or a partnership (multi-member LLCs). However, LLCs can elect to be classified as a C corp or S corp. Do I file my LLC and personal taxes together?

Can a limited liability company be taxed as a corporation?

Each partner’s Schedule K-1 becomes part of their personal tax return. If an LLC thinks it can lower its tax bill by being taxed as a corporation, it can file Form 8832 with the IRS and opt to be taxed as a C corporation.

How does a multi member LLC file taxes?

Filing taxes as a multi-member LLC The LLC files Form 1065 to report the business income or loss to the IRS, then gives each member of the LLC a Schedule K-1, which is used to report their share of the LLC’s income and deductions on their personal tax returns.