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New Member
posted Apr 23, 2020 10:40:47 AM

When should a Single-Member LLC file as a company or file with personal taxes?

1. As a single-member LLC - what are the pros and cons of hiring yourself or filling 1099 for yourself?  (considering cost, deductions, credits)

 

2. As a single-member LLC - when is best to file your business revenue separate from personal taxes?  (Pros/Cons)

 

3. how to do it eight to avoid errors/red flags with IRS

 

4. Are there any free online tools to help complete a projected 941, 1099, K1, and schedule C to compare and determined best option self or/and when determine to hire or contract?

 

5. Any free online tools that will calculate SUTA/WC/UI and related taxes to pay IRS and State?

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1 Replies
Expert Alumni
Apr 23, 2020 11:27:53 AM

The IRS considers a single member LLC to be a disregarded entity.  

 

The IRS only recognizes sole proprietorships, partnerships with more than one partner, S Corporations and C Corporations.

 

If you are a single member LLC, you cannot be an employee of the single member LLC, you are self-employed, and should include your business on your 1040.

 

If you want to be an employee of your business, you have to form a corporation.

 

TurboTax offers Quick Employer Forms for free with TurboTax Self-employed or TurboTax Home and Business.   

 

Quick Employer Forms helps small business owners quickly and easily create W-2, 1099-MISC, 1099-INT, and 1099-DIV forms.