I have recently opened my LLC and I am the only member at this moment. I want to import Towels and other linen products and sell in chains or retailers. What would be the code for my business?
Currently I have code for selling products online like Shopify/Amazon.
I'm not sure exactly what you mean by "sell in chains or retailers." If you will be selling the imported goods to the chains or retailers, then you are a wholesaler. I would use code 424990 for wholesalers of "other miscellaneous nondurable goods." If you mean that you will have your own store within a store, and you will be selling directly to consumers, then you are a retailer. In that case I would use code 459990, "All other miscellaneous retailers."
What about if my LLc start bidding govt or non govt contracts and the supply goods as per their demands? Would it still be the same or different?
i will really appreciate your reply
I think it should be the same. Selling to the government is the same as retail sales. For a non-government contract, it would depend on what your customer is doing with the goods. If they are buying the goods for their own use, that's a retail sale. If they are reselling the goods, you are a wholesaler.
Don't spend a lot of time or energy worrying about the business code. It doesn't affect your tax. The IRS uses it mainly for statistical purposes.
I notice that in your original question you said that you are the only member of the LLC "at this moment." If you add other members the LLC becomes a partnership for tax purposes. That means it is a different business entity, and it involves a lot of other tax considerations. If you add other members you should consult a local tax professional for guidance.
Yes as of now, it’s a single member LLC only and thank you for your quick reply. Till date I was using turbo tax for personal filling and now will do the same for my LLC also. Is there anything else regarding tax purposes I need to worry about?
As long as it remains a single-member LLC you don't file separately for it. You include it as business income in your personal tax return. That's all you have to do.
If it becomes a multi-member LLC it gets a lot more complicated. You have to file a separate partnership tax return, Form 1065, for the multi-member LLC. The partnership tax return includes a form called Schedule K-1 for each partner with information that the partner has to enter in his or her personal tax return. There may also be issues about how you and the other partners are paid. This is why I strongly suggest that you obtain local professional help if you make it a multi-member LLC.