I opened an llc, i didn't take income but i had a profit at the end of the year and the money was a balance in the bank account. How do i report this?

up2danielle — Tue, 04 Jun 2019 20:54:17 GMT

I see how to add expenses, how do I add income? Should I be taking salary in the future? Will not taking salary this year cause me irs issues? doesn't the money in the bank at years end show as profit on my taxes?

You don't report a salary for your Single Owner LLC. Inst...

AmandaR1 — Tue, 04 Jun 2019 20:54:18 GMT

You don't report a salary for your Single Owner LLC. Instead, your LLC defaults to be taxed as self-employed and the net income from your business (business income minus all business expenses) flows to your main tax form for income taxes and self-employment taxes if your net income is greater than $400.

I believe your first question is asking about money you contributed to the business, since you said you didn't have income but you do have a profit. This should be tracked for your LLC accounting records and you'll read the value on your business balance sheet. You don't report this for taxes. Self-employed taxes are the easiest type of business, because all you report is income and expenses on a schedule C with your personal tax form.

Trying to deduct a salary you paid yourself; would get you in trouble with the IRS (as a self-employed business), so it sounds like you're in good shape.

topic I opened an llc, i didn't take income but i had a profit at the end of the year and the money was a balance in the bank account. How do i report this? in After you file

I opened an llc, i didn't take income but i had a profit at the end of the year and the money was a balance in the bank account. How do i report this?

You don't report a salary for your Single Owner LLC. Inst...