Carl
Level 15

Business & farm

You really need to seek professional help; especially if your state taxes personal income, and even more so if you live in a community property state.

You don't see if the LLC is a single member LLC or multi-member LLC. I am assuming it's a multi-member LLC since "we" can't own a single member LLC.

Additionally, a multi-member LLC files it's own tax return on IRS Form 1065-Partnership/Mulit-Member LLC Tax Return. But if you live in a community property state then you have the option of splitting all business income/expenses 50/50 and each individual filing their own SCH C as a part of their personal 1040 tax return. Of course, you can only do that provided you are legally married and file a joint tax return. If you would be doing two separate "DBA"s, then it doesn't matter what the earnings are of each DBA if you live in a community property state. The income/expenses of the LLC are split 50/50 regardless.

Additionally, the 1065 Partnership return is due by March 15th each year, and the late filing penalties are $205 per month, per member.

If you elect to treat the LLC as a corporation (be it S-Corp or C-Corp) the filing and other paperwork requirements are even more stringent.

Additionally, if doing an online business then you may have to deal with paying sales taxes to every state and other jurisdiction where you make an online sale.

If you're head isn't spinning yet, then it should be. Please seek professional help in your locale before you do things in a way that will cost you. I've seen in the past where folks jump in feet first without a clue, only to have all the fines, penalties, back taxes and late fees bankrupt their business before it even gets off the ground. Makes the cost of professional help seem like a pittance in comparison.

Seek professional help for at least your first year, and if feasible do so before you do one more thing towards establishing the business.