Single member LLC and side job question

[Bobbychow305]

Hi. 

I worked part time for 4 companies. Two of them are W2 while other paid me as 1099 independent contractor under my LLC. How should I file single member LLC? Do I need to file separate or just 1? Lil confused what turbo tax version to buy. Thanks 

[MaryK4 · Accepted solution]

You will enter your SMLLC on a Schedule C so you will need Self-Employed (or Home & Business if you download).  If the work was similar you can enter on one Schedule C (like if you use the same equipment, do the same type of work etc)- otherwise you must put each if unrelated, on separate Schedule Cs.  

[Bobbychow305]

Mary,

 that was best and simple answer ever. Just confirm: download self-employed (home & biz). Follow instructions as it will let me put my W2 and 1099 as it's similar jobs?

[MaryK4 · Accepted solution]

Thanks for the clarification- your W2s will be separate- the go on Line 1a of your tax return.  The other income can go on the Schedule C.  When you are a W-2 employee, your employer must withhold Social Security and Medicare tax - you pay one half and the employer pays one half.  With the Self- Employment, you must pay the Social Security and Medicare tax on net income- which is the amount you receive less expenses.  @Bobbychow305 

[Bobbychow305]

Since I'm a W2 and 1099 under my smllc do I still need to use home business version or just do regular? I read smllc is considered disregard entity and I can put all LLC/1099 earnings in schedule C. Trying to save some money and not get home business unless it's required or helpful for deductions etc ..

[DoninGA]

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@Bobbychow305 wrote:

Since I'm a W2 and 1099 under my smllc do I still need to use home business version or just do regular? I read smllc is considered disregard entity and I can put all LLC/1099 earnings in schedule C. Trying to save some money and not get home business unless it's required or helpful for deductions etc ..

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Since all of the TurboTax desktop CD/Download editions have all the same forms, schedules and worksheets you can use any of the editions.  The higher priced editions give you more guidance and help as you are entering your tax data.

[BrittanyS]

Single Member LLCs are considered disregarded entities with the IRS.  According to the IRS, "For income tax purposes, an LLC with only one member is treated as an entity disregarded as separate from its owner, unless it files Form 8832 and elects to be treated as a corporation. However, for employment tax and certain excise taxes, an LLC with only one member is still considered a separate entity."

For the desktop version of TurboTax, you would need the Home and Business to enter the Schedule C form or use the TurboTax online Self-employed version.

For more information, see the link below:

Single Member LLCs