Should I have paid myself with since I was the only worker for my LLC business?

cayleewright20 — Tue, 04 Jun 2019 19:09:56 GMT

I started an single-owner LLC this year and opened my own food truck. I was the only one who worked and I also had a full time job. My full-time job was enough to pay all of my personal bills so I didn't pay myself for the time I worked at the food truck. All of the money that was earned at the food truck I put directly back into the business account because I had a large loan I was worried about paying off. Now that tax season is upon us I am worried about the fact that I didn't pay myself or have any employees. Should I have paid quarterly federal tax? I paid state, county, and city tax but I never made a payment on the federal level because I didn't technically have any employees.

An LLC is an entity created by state statute. Depending o...

Coleen3 — Tue, 04 Jun 2019 19:09:57 GMT

An LLC is an entity created by state statute. Depending on elections made by the LLC and the number of members, the IRS will treat an LLC either as a corporation, partnership, or as part of the owner's tax return (a "disregarded entity")

As such, there is no formal reasonable compensation rule. Your profit is your income reported on the 1040.

topic Should I have paid myself with since I was the only worker for my LLC business? in Business & farm

Should I have paid myself with since I was the only worker for my LLC business?

An LLC is an entity created by state statute. Depending o...