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New Member
posted Sep 11, 2023 3:38:05 PM

Self employment tax on self funded business checking acct

Solo LLC

I opened Business checking acct funded by personal income. Put in $230 total. 
No actual business revenue and I must close business and banking. Do I need to pay a self-employment tax on this money that I used to open the account?. --Since it was my personal savings, I have already paid taxes on it when I earned it years ago if I have to claim SE tax then I am paying taxes twice on the same money. 
thanks

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2 Replies
Level 15
Sep 11, 2023 3:51:46 PM

The personal funds that the owner of the business deposited into the business account is not earned income to the business therefor is not subject to Self-Employment taxes.

New Member
Sep 11, 2023 4:11:13 PM

Thank you for responding. That is the way I saw it too. (Was just confirming).

 

My original question was to help me determine my next steps on closing different accounts.  I need to put a hold/cancel on my EIN but have to get my business related taxes settled first. I have none since no earned business income. So I should be good to go ahead and close the EIN now, as well as the banking.  

thanks again