1. Should I setup the employee as W2 or 1099? (This is a single employee LLC)
There is no such thing as a "single employee LLC". The owner of an LLC can not be an employee of that LLC. Under no circumstances will the owner of a single member LLC ever issue themselves a W-2, 1099, or any other type of tax reporting document. There are not exception *FOR* *A* *SINGLE* *MEMBER* *LLC*. I stress this, because an LLC can make an election to be treated like an S-Corp or C-Corp *FOR* *TAX* *PURPOSES* *ONLY*.
A single member LLC is considered a disregarded entity for tax purposes. Income earned by the business is no different than income earned by you personally.
2. What type of Federal Filing Form to be considered?
It all gets reported on SCH C as a part of your personal 1040 tax return.
Now, if you do "in fact" have other employees, how you treat them for tax purposes depends on how you treat them in your business. Are they contractors? Or are they actual employees?
