Do I need to file?

[shameccaf]

I have a 1 member LLC. I haven't paid myself. All money is going back into the business. Do I need to file still? Is there a threshold?

[tagteam]

Single-member LLCs are treated the same as sole proprietorships for federal income tax purposes.

You need to do nothing differently for federal income tax purposes.

[Haden Roye]

I thought you had to file quarterly for single / sole proprietor LLC?

[tagteam]

Most likely, but it is no different than if you are operating as a sole proprietor.

[shameccaf]

So I can just file annually instead of quarterly right?

[VolvoGirl]

Unless your SMLLC (Single Member LLC) is set up as an S corp you just file it on schedule C in your personal return.  You do not pay  yourself.  Your income is the Net Profit on Schedule C. and you pay Self Employment tax on it. 

For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

[DashonnonH]

For income tax purposes a single member LLC is not separate from the owner. Any monies earned by the LLC is considered money you earned as a self-employed individual and is reported with your individual tax return. Although the money is going back into the business, you are considered to have earned the money and used it for business expenses. 

If you are required to file a tax return, then you are required to report the earnings and expenses you incur in your business during the year on Schedule C.

If the LLC is your only income, you are only required to file a tax return, reporting the earnings and expenses, once your net income is $400 or more. 

Although not required to file, you may want to file your self employment for other reasons such as claiming the loss of your business against your ordinary earned income. Your losses from the business typically reduce the wages your earned during the year. Or to provide proof that your business is legitimate and has been open for a certain amount of time. 

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

If you do have net earnings above $400, you are required to pay self-employment tax on the profit. Yes, if you have a profit for your business you should make quarterly payments

When are quarterly taxes due:

https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

What is the self-employment tax:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/the-self-employment-tax/L8xXjolB4

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