You are correct in that a SMLLC is treated, for tax purposes, as a sole proprietor and thus, prepares a Schedule C in connection with the business. As an LLC, you do have the option to be taxed as an S-Corp or a C-Corp; however, those tax elections involve other considerations, some of which it appears you have already researched, such as a distribution versus a wage. If you elect to be taxed as an S-Corp, then the concept of distribution versus wage applies to you; however, you will need to justify how you characterize your income, i.e., whether a particular payment is a distribution and thus, among other things, not subject to SE tax, or a wage and subject to, among other things, SE tax.
On your Schedule C you should enter your gross receipts--the $200,000--and also your business expenses. Your income tax, as well as your self-employment tax (Schedule SE) are based on your net profit. You are correct in that TurboTax will prepare Schedule SE for you and yes, you do need to pay self-employment tax and include Schedule SE with your return. As a self-employed person, you will pay the full amount of SE tax--currently 15.3%--however, one-half of this amount will be entered on Schedule 1 to your Form 1040 as an adjustment to income. The adjustment to income reduces the amount of your income subject to tax and TurboTax will prepare Schedule 1 for you.
It is recommended that you pay estimated tax payments quarterly, and in an amount based on what you anticipate your net income has been for the quarter.
Your self-employed health insurance premiums are a business deduction, but these premiums are not entered on Schedule C. Self-employed health insurance premiums are entered on Schedule 1 as an adjustment to income.
Regarding which TurboTax product to use, if you decide to prepare a Schedule C, then you can use TurboTax Self-Employed. If you elect to be taxed as an S-Corp, you will need TurboTax Business, in addition to TurboTax Self-Employed (or TurboTax Home & Business) as you will need to prepare Form 1120-S. U.S. Income Tax Return for an S Corporation.
@bluesjumper
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