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winning1906
Level 1

Single Member LLC and Personal Tax Return

I have a single member LLC.

 

1). Do I file a separate return for my LLC from my personal?

2). Do the profits or Loss role into the personal C or will they always be kept and file separately with no back to either personal or LLC return.

1 Best answer

Accepted Solutions
tagteam
Level 15

Single Member LLC and Personal Tax Return

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return.

 

See https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

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7 Replies
tagteam
Level 15

Single Member LLC and Personal Tax Return

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return.

 

See https://www.irs.gov/businesses/small-businesses-self-employed/single-member-limited-liability-compan...

View solution in original post

DoninGA
Level 15

Single Member LLC and Personal Tax Return

If your single member LLC has not incorporated in your state, then your business, for tax purposes, is a disregarded entity.  You report your income and expenses on a Schedule C.  The Schedule C is part of and included with your personal tax return, Form 1040.

A net profit or net loss from the your business is reported on Schedule C.  The gain or loss flows to Schedule 1 Line 3 which flows to your Form 1040 Line 7a.

Self-employment taxes on your net profit is reported on Schedule SE.  This amount flows to Schedule 2 Line 4 which flows to your Form 1040 Line 15.

Carl
Level 15

Single Member LLC and Personal Tax Return

A single member LLC is considered a disregarded entity by the IRS. IN other words, money earned by the LLC is *IN FACT* earned by you. All business income and business expenses are reported on SCH C as a physical part of your personal 1040 tax return. It does not matter if you are filing a joint return either. A single member LLC *DOES* *NOT* file a physically separate return under any circumstances.

 

- But I filed IRS Form 2553 to have my LLC treated like an S-Corp?

If so, and if the IRS approved it, then as far as the IRS is concerned you do not have an LLC of any type. Your business is *NOT* a single member LLC It is an S-Corp *FOR* *TAX* PURPOSES* ONLY*. Period. End of Story.

 

winning1906
Level 1

Single Member LLC and Personal Tax Return

I have an EIN and I am incorporated with the secretary of state.  Will that make a difference in filing separate returns for the LLC with an EIN or would everything still be done under my personal return?

tagteam
Level 15

Single Member LLC and Personal Tax Return


@winning1906 wrote:

I have an EIN and I am incorporated with the secretary of state.  Will that make a difference in filing separate returns for the LLC with an EIN or would everything still be done under my personal return?


You most likely filed Articles of Organization with your secretary of state (i.e., your LLC is not "incorporated", as would be the case if you were filing for a corporation in your state). 

 

Regardless, the fact that you have an EIN and filed articles of organization for an LLC with your secretary of state does not impact the manner in which you file your federal income tax return (i.e., the LLC, as a single-member LLC without an election to be taxed as a corporation, is still a disregarded entity).

Critter-3
Level 15

Single Member LLC and Personal Tax Return

If you are not sure if you incorporated or not on the federal level then PLEASE seek out local professional assistance to get educated on what you are and what you need to do on both the fed & state levels so you can avoid costly mistakes later. 

Anonymous
Not applicable

Single Member LLC and Personal Tax Return

if the LLC is for rental property and the entity is not a corporation it gets reported on schedule E.  if it's a corp, then definitely seek pro help.  

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