Business & farm

I agree with @Critter that for the amount of $$ we are talking about, don't lose sleep.

Based on your facts and questions, I also agree it would be good to get some professional tax advice for your initial year so you get started on the right foot.

Some follow-up comments:

  • As noted, there is a difference between a single member LLC that is treated as a disregarded entity and a single member LLC that elected to be taxed as an S corp.
  • In order to be treated as an S corp, you would have needed to make a specific election and you would have received confirmation back from the IRS that they accept your election to be taxed as an S corp.
  • If you have not elected to be taxed as an S corp, you are completely okay, but still advise that you get some professional advice on how to move forward and understand best practices for the type of entity you are using
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.