Apologies to everyone for the confusion. I clearly have been confused, and the various answers prompted me to do further research and straighten everything out.
I can definitively confirm that when I formed my LLC (this past summer), I kept the default 'disregarded entity' (aka sole proprietorship) status. I did not take any further action (eg file Form 2553) to get S-corp tax status.
Correct me if I'm wrong, but it appears I'm on the right track with these points:
- TurboTax Home & Business is the right product for me
- Schedule C is the correct place to enter my LLC income
- The concept of salary vs distributions applies to S-corp and has no relevance to me
- On an earlier question...I do have it in my divorce agreement to pay my ex-wife a portion of child support to cover my health insurance under her family plan, so it's OK to claim that as a deduction
After I file my taxes, I'll have to investigate if there is any benefit to obtaining S-corp tax status. Feels like saving some money on not paying payroll taxes on the distributions does not offset the other hassles and complications that come with it. Your thoughts are welcome (or I can start another thread when the time comes).
Thanks again to everyone who helped me out!
