FranklinF
Employee Tax Expert

Business & farm

An LLC, Limited Liability Company, is a State Legal Entity, not a tax entity. 

A Single-Member LLC (SMLLC) is a disregarded Entity for tax purposes which would default to a Schedule C (Profit or Loss from Business) or Schedule F (Profit and Loss from Farming) as applicable.

Regardless of your TAX ENTITY: Sole Proprietor, Partnership, S-Corporation, C-Corporation, Trust or Estate, you may or may not have Income Tax Nexus and/or Sales Tax Nexus with several states, including Maryland.

Nexus may be determined by physical presence, substantial economic activity, sales volume, as determined by each individual state with whom you transact business.

One of the main reasons why companies incorporate in Delaware is the legal and liability protection of established corporate laws.

You will NOT issue a W-2 to yourself. However, you MUST issue W-2's to your employees and 1099's to your contractors. In addition, there are many Bookkeeping and Payroll Software and Services you may choose from, QuickBooks being one of the most popular.

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