991008
You'll need to sign in or create an account to connect with an expert.
The owner of a single member LLC or multi-member LLC can not be an employee of the business they own. Period. Under no circumstances will you issue yourself a W-2, 1099-MISC or any other type of tax reporting document. There are no exceptions.
If a single member LLC all business income/expenses are reported on SCH C as a physical part of your personal 1040 tax return.
If a multi-member LLC all business income/expenses are reported on a 1065-Partnership return.
If the business was "open for business" for even one single day of the tax year, you are required to report it to the IRS. Income and expenses are *not* a requirement. Being "open for business" requires you to report it.
Yes, you add this activity to your personal tax return. A single member LLC is a "pass thru entity" for tax purposes. You report your income and expenses on Schedule C.
If you were "open for business", then you may deduct the expenses on Sch C, even though you have no income. Otherwise, those expense are "start up costs" and amortized (deducted) over a 15 year period
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
pollyvdz63
New Member
MrMoose
Level 1
tuneman01
Level 1
vmalhotra47
Level 1
fdr8cer
New Member