I started an single-owner LLC this year and opened my own food truck. I was the only one who worked and I also had a full time job. My full-time job was enough to pay all of my personal bills so I didn't pay myself for the time I worked at the food truck. All of the money that was earned at the food truck I put directly back into the business account because I had a large loan I was worried about paying off. Now that tax season is upon us I am worried about the fact that I didn't pay myself or have any employees. Should I have paid quarterly federal tax? I paid state, county, and city tax but I never made a payment on the federal level because I didn't technically have any employees.
You'll need to sign in or create an account to connect with an expert.
An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity")
As such, there is no formal reasonable compensation rule. Your profit is your income reported on the 1040.
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.
user17727399851
New Member
dlthompson
New Member
user17727382039
New Member
joncarterconstruction
New Member
wittpa
New Member