Hi juanagug7,
I'll assume the LLC is owned only by your husband, which is called a single-member LLC.
When you have a single-member LLC, you report the revenues and expenses on your individual income tax return, Form 1040, using Schedule C. You'll pay tax on the net profit, or if you have a loss, it can reduce your other income. In addition to income tax, you'll owe self-employment tax on the net profit for the LLC. Self-employment taxes are 15.3% of the net profit.
You'll want to keep good business records of your income and expenses so you have the information necessary to complete the Schedule C. Using software like Quickbooks can make tax time easier.
If you expect the LLC to generate a net profit, which will result in additional taxes owed, you may want to consider making quarterly estimated tax payments to avoid underpayment penalties. Depending on how large a profit you expect, you could also increase your withholding with your employer to cover the additional taxes owed for the LLC.
If I've assumed incorrectly, and there are more than one LLC member/owner, then you'll need to treat it as a partnership and file a partnership tax return before completing your individual income tax return. TurboTax Business can help with a Partnership tax return.
I hope this gives you more information about how having an LLC will change your tax situation.
Sincerely,
Kimberly, CPA for over 30 years
@juanagug7
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