I am filing my business taxes for the first time, business began in 2015. Is there somewhere that I can report that I have paid myself X amount. As all the business income is not what I actually earned, a lot was spent on buying tools and other expenses.
As the sole proprietor owner of a business, you report the income and expenses as a part of your personal tax return on SCH C. You do NOT pay yourself. The IRS considers and LLC to be a disregarded entity. This means that as far as the IRS is concerned, income earned by the business IS income earned by you. So you will NOT issue yourself a W-2, a 1099-MISC or any other tax reporting document. It's not necessary and will just mess you up with the IRS.
Thank you. I have called turbo tax several times and been on hold for 40 minutes waiting for someone to answer that question for me.
You and half a million other people on hold. It's busy this time of year, remember. But glad I could be of help.
Oh I bet there are a lot of others on hold also. Would you know if I have to file state taxes for Florida also? It says I'm due $0 but I am being charged $36.99 to file them.
1. As a single-member LLC - what are the pros and cons of hiring yourself or filling 1099 for yourself? (considering cost, deductions, credits)
2. As a single-member LLC - when is best to file your business revenue separate from personal taxes? (Pros/Cons)
3. how to do it eight to avoid errors/red flags with IRS
4. Are there any free online tools to help complete a projected 941, 1099, K1, and schedule C to compare and determined best option self or/and when determine to hire or contract?
5. Any free online tools that will calculate SUTA/WC/UI and related taxes to pay IRS and State?