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I worked until October 2016, then purchased a business. How do I file?

 
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GeoffreyG
New Member

I worked until October 2016, then purchased a business. How do I file?

If you are the only owner of your business, even if it is registered as an LLC (Limited Liability Corporation), you would still file your taxes as an individual . . . running your business income, expenses, etc. through what is known as Schedule C.  The exception to that (as SweetieJean correctly alludes to in her comment) would be if you incorporated somehow (as a traditional C-Corp), in which case your company would be its own tax-filing entity.

A sole-proprietorship or a single-member LLC is purely as pass-through entity and does not need to file its own federal tax return.  (If you are an LLC in California, even with only one owner, then there is a state filing obligation, but that's not true in almost all the other states).

Basically, then, you will file your personal tax return, Form 1040, as you normally would.  Include, certainly, your W-2 wage income and such.  Then, you will report your business activity on Form 1040, Schedule C, along a Schedule SE for any self-employment taxes you may owe if you were profitable (the software will walk you through all of the necessary entries).

One final word is that we would recommend you use TurboTax Home & Business, or, if online, the program we call TurboTax Self-Employed.  That way you will get asked all of the necessary and appropriate questions by the software.

Finally, here's a link to one of our TurboTax FAQ webpages that may help answer some of your small business tax questions; at least it's a place for you to get started.

https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Beginner-s-Tax-Guide-for-the-Se...

Congratulations on your new business venture, and good luck to you!



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3 Replies

I worked until October 2016, then purchased a business. How do I file?

Are you the sole owner? Is it an S Corp or a Corp?

I worked until October 2016, then purchased a business. How do I file?

I'm the sole owner. It's a small bakery business. It's a DBA
GeoffreyG
New Member

I worked until October 2016, then purchased a business. How do I file?

If you are the only owner of your business, even if it is registered as an LLC (Limited Liability Corporation), you would still file your taxes as an individual . . . running your business income, expenses, etc. through what is known as Schedule C.  The exception to that (as SweetieJean correctly alludes to in her comment) would be if you incorporated somehow (as a traditional C-Corp), in which case your company would be its own tax-filing entity.

A sole-proprietorship or a single-member LLC is purely as pass-through entity and does not need to file its own federal tax return.  (If you are an LLC in California, even with only one owner, then there is a state filing obligation, but that's not true in almost all the other states).

Basically, then, you will file your personal tax return, Form 1040, as you normally would.  Include, certainly, your W-2 wage income and such.  Then, you will report your business activity on Form 1040, Schedule C, along a Schedule SE for any self-employment taxes you may owe if you were profitable (the software will walk you through all of the necessary entries).

One final word is that we would recommend you use TurboTax Home & Business, or, if online, the program we call TurboTax Self-Employed.  That way you will get asked all of the necessary and appropriate questions by the software.

Finally, here's a link to one of our TurboTax FAQ webpages that may help answer some of your small business tax questions; at least it's a place for you to get started.

https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Beginner-s-Tax-Guide-for-the-Se...

Congratulations on your new business venture, and good luck to you!



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