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Business & farm
A single-member LLC (that has not filed an election to be treated as a corporation) is disregarded for income tax purposes. As far as your income tax is concerned, the LLC does not exist. There is no distinction between you and the LLC. It's the same as being a sole proprietor. The LLC's income is your income. The LLC's expenses are your expenses. The LLC's money is your money.
There is no owner's draw. You cannot pay yourself, and you do not give yourself a 1099-NEC, a W-2, or any other tax form. Paying yourself would be like taking money out of one pocket and putting it back in the same pocket.
‎December 9, 2024
11:22 AM