It is an LLC - me and my husband are the only employees.
I know these states don't have income tax - but this can't mean that there are no taxes involved, can it? That seems far too simple.
Great, thank you! So for a company that's barely made anything this year, barely pays living expenses, and has NO profit, what forms do I need? And what would paying health insurance look like? Right now we pay out of pocket for private insurance (not Medicaid, etc)
"employees" is really only proper if the LLC elected corporate taxation. otherwise you are members/ not employees and do not take a salary. in non-community property states a partnership return would likely need to be filed but the net income loss passes through to the members on their 1040. if the LLC is a business (as opposed to a rental activity) you pay self-employment tax on any net income. medical insurance deduction against adjusted gross income would be limited to any remaining profit after subtracting the S-E tax. if there is no profit the medical insurance is treated as a medical expense and would be reported on schedule A if you itemize. Turbotax can handle this situation with proper input
the policy should be in the name of the LLC or there be a formal reimbursement arrangement if the policy is in your names.