Moving states and reincorporating

[leiterdips]

We moved from FL to TN and want to know what this means for our business taxes. We have not earned much at all this year, so I'm unsure how much we'll owe, but I want to make sure taxes are taken care of 

[tagteam]

What type of entity do you have? 

Are you a sole proprietor or do you have a partnership or corporation?

Neither Tennessee nor Florida levies an individual income tax.

[leiterdips]

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. 

[tagteam]

LLCs are pass-through entities. 

Tennessee may have a franchise tax (annual) but that is not an income tax. 

Any income generated by the LLC is passed through to the individual members.

[leiterdips]

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) 

[tagteam]

I'm going to page Champ @Mike9241 for this now. Please check back.

[Mike9241]

"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.