topic Self employed Llc in Business & farm

Self employed Llc

Licocard19 — Mon, 03 Aug 2020 06:05:49 GMT

I am self employed. I am the only owner and my business is an LLC. I filled my personal tax return already but did not include my business at all. I also paid myself from my own business. I also held a job that issued me a W2. I'm not sure if I need to amend my personal tax returns to include my business income or should I file my business income separately? Any help is greatly appreciated.

Re: Self employed Llc

Opus 17 — Tue, 04 Aug 2020 13:00:25 GMT

Unless you make a special election to be taxed as an S Corp., a single member LLC is considered a disregarded entity, and it is reported on schedule C as part of your personal tax return. You will have to go back and file an amended return that includes a schedule C to report all of your income and business expenses, calculate the income tax and self-employment tax, and probably pay a fair amount back to the IRS unless you made estimated payments that you did not put on your tax return originally.

(Note that if you elect to be taxed as an S Corp., that only changes the tax return you file, it does not actually make you an S Corp. Corporate tax returns were due March 15, not April 15, did not have an extension due to the coronavirus, and carry a late fee of $195 per month per member.)

Re: Self employed Llc

Critter-3 — Tue, 04 Aug 2020 15:00:25 GMT

" I also paid myself from my own business"

What do you mean by that ??? If you are a single member LLC and are not incorporated then you cannot pay yourself wages and report it on a W-2 ... is that what you did ?

Re: Self employed Llc

Carl — Thu, 06 Aug 2020 00:43:47 GMT

but did not include my business at all.

You will need to file an amended 2019 return to add your business income & expenses on SCH C as a physical part of your personal tax return. It does not matter if you filed joint.

I also paid myself from my own business.

Under no circumstances does the owner of a single member LLC issue themselves a tax reporting document of any type. The IRS considers a single member LLC to be a disregarded entity. Therefore the owner of a single member LLC can not be an employee of that business. You do not issue yourself any type of tax reporting document what-so-ever. There are no exceptions.