WKins2
Expert Alumni

Business & farm

That is correct; as a single-member LLC, your business income and expenses will be reported on Schedule C of your personal 1040, there is no separate business tax return. You will use your business EIN on the Schedule C if you have one. 

 

QuickBooks Self-Employed is meant for small business (generally one-person operations) that need a way to track business income and expenses separate from their personal finances. QuickBooks Self-Employed will also help you calculate your quarterly estimated payments. The only drawback of QuickBooks Self-Employed is that it is not as robust as the other versions of QuickBooks Online. You will want to upgrade to at least QuickBooks Online Essentials once your business starts to become more complex, which inevitably happens as you become more profitable. 

 

As far as 1099s, you can only be a contractor in your own business under VERY limited circumstances. You do not need your business to issue you a 1099 or any other form. If your business pays any unincorporated person or business more than $600, you will want to have them fill out a W-9 and provide that to you before you pay them (it can sometimes be difficult to get this form from the service provider after you pay them). The W-9 will include all of the information needed for the 1099 that you will need to issue them by January 31st of the following year. Note that if the W-9 shows that the service provider is an incorporated business (an S or C Corporation), you do not need to issue them a 1099. You also do not issue 1099s for credit card payments or for payment processing payments (like PayPal). 

 

For more information on 1099s, please see https://www.irs.gov/forms-pubs/about-form-1099-misc.

 

 

 

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