My wife is a speech pathologist and was asked by her agency to create an LLC in New Jersey to receive payments. We established the LLC last year and she received her 1099-MISC. Do I enter this info under our personal return in the “Business Income” section? Or, need to do anything special with this LLC info?
Also, I believe she paid ~$100 to establish the LLC. I'm assuming I can deduct this?
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@MrBean wrote:
Do I enter this info under our personal return in the “Business Income” section?
Yes, it is self-employment income, since she is treated essentially as a sole proprietor, and the income is entered on Schedule C (assuming the LLC is a single-member LLC for which no election to be taxed as a corporation was made).
@MrBean wrote:Also, I believe she paid ~$100 to establish the LLC. I'm assuming I can deduct this?
She can deduct that expense as Taxes and Licenses in the Other Common Business Expenses section as an organizational cost.
Thanks so much
and to confirm: we don’t need to enter the LLC # anywhere in TurboTax? I didn’t get a prompt to enter while inputting the 1099-misc
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