If it's a single-member LLC it is disregarded for federal income tax purposes. It's called a "disregarded entity." That means that, as far as your tax return is concerned, the LLC doesn't exist. You file exactly the same way that you did when you were a sole proprietor and didn't have an LLC. You still report your business income and expenses on Schedule C. You do not report your "draw" because the LLC's income is your personal income, just like it was when you didn't have an LLC.
But who are the "we" that you mentioned? If you have a multi-member LLC it's a whole different story, unless you and your spouse are the only members and you live in a community property state. If you have a multi-member LLC, post back with more details and I or someone else will tell you what you have to do.
If it's a single-member LLC it is disregarded for federal income tax purposes. It's called a "disregarded entity." That means that, as far as your tax return is concerned, the LLC doesn't exist. You file exactly the same way that you did when you were a sole proprietor and didn't have an LLC. You still report your business income and expenses on Schedule C. You do not report your "draw" because the LLC's income is your personal income, just like it was when you didn't have an LLC.
But who are the "we" that you mentioned? If you have a multi-member LLC it's a whole different story, unless you and your spouse are the only members and you live in a community property state. If you have a multi-member LLC, post back with more details and I or someone else will tell you what you have to do.
Thank you, @rjs.
The "we" is considered a single entity - my wife is the Sole Owner and I am the "manager" of the account.
Based on that, I believe your guidance provided answers my questions.
Thank you!