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Level 1

I have 2 entities they are LLCs. Do I need to file self employment tax separate from personal income? Do I need to set up a business profile for each of them? 1099 for 1

 
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Level 11

I have 2 entities they are LLCs. Do I need to file self employment tax separate from personal income? Do I need to set up a business profile for each of them? 1099 for 1

 

Can you expand on the type of entity the LLC is operating; single member LLC, multi-member LLC, LLC that has checked the box to be an association and classified as an S corporation?

 

 

Level 20

I have 2 entities they are LLCs. Do I need to file self employment tax separate from personal income? Do I need to set up a business profile for each of them? 1099 for 1

If a single member LLC, that is considered a disregarded entity by the IRS. All the income for each single member LLC are reported on SCH C as a physical part of your personal 1040 tax return. You will have one SCH C for each individual single member LLC business.

If a multi-member LLC, then each multi-member LLC must file it's own physically separate IRS Form 1065 Partnership Return. (For the IRS, the only difference between a partnership and a single member LLC, is the spelling.) Then each multi-member LLC will issue each owner a 1065 K-1 which each owner will need in order to complete their personal 1040 tax return.

If the LLC (be it single member or multi-member) filed form 8832 with the IRS to be "treated like an S-Corp" for tax purposes, then the LLC is not an LLC as far as the IRS (and *ONLY* the IRS) is concerned. It's an S-Corp. Therefore the LLC/S-Corp must file it's own IRS Form 1120-S Business tax return. The business will issue each owner of the businses an 1120-S K-1 which each owner will need to complete their personal 1040 tax return.

If this is a multi-member LLC/Partnership or S-Corp, then the 2018 tax return for that business was due on March 15, 2019. If you filed an extension for the business, then the due date is Sept 15th, 2019. The late penalty for filing late is $200 per owner/shareholder, per month. That would mean that if an extension was required but not filed, the late filing penalty is already up to $800 for each owner and gots to $1000 on Aug 15th, 2019.

 

Level 20

I have 2 entities they are LLCs. Do I need to file self employment tax separate from personal income? Do I need to set up a business profile for each of them? 1099 for 1

Additionally, a business is required to pay taxes each quarter. While the IRS has all these worksheets you can use to figure the amount of tax to pay to the IRS each quarter, in my personal opinion they are an absolute waste of your time. If you just send the IRS an absolute minimum of 20% of your ***GROSS*** business income each quarter, then come tax filing time you'll be fine. If you have reason to believe your total household income from all sources will be more than $160K for the entire tax year, then you should send the IRS at least 25% of your business gross earnings each quarter.

You can pay your federal quarterly taxes online at http://www.irs.gov/payments. When you do that *PRINT* *YOUR* *RECEIPT* and file it with your business records. Three rules to keep in mind when dealing with the IRS.

 - You are guilty until proven innocent.

 - The burden of proof lies on the accused (that would be you!) and not the accuser.

 - If it's not in writing, then it *did* *not* *occur*

Finally, if your state taxes personal income you will also need to pay your state taxes each quarter. How you pay your state, depends on what state. Some have the ability to pay online while others do not. So you'll have to check with your state's department of taxation or revenue website to see what payment methods are available.

IRS quarterly tax due dates for the 2019 tax year are at https://www.irs.gov/faqs/estimated-tax/individuals/individuals-2