The first tax return that involves the business will not be filed until 2018, when TurboTax 2017 is released. What kind of business is it? Sole proprietorship? single member LLC? multi-member LLC? S-Corp? C-Corp? Partnership? Joint Venture? This really matters for determining just exactly how the business income/expenses gets reported to the IRS, as well as your state if your state taxes your income.
Thank you, it's a sole proprietorship. It's a Medical Billing Company.
SweetieJean, the wording of your response is misleading. A single member LLC can't "also be an S-Corp". Either it's an LLC or it's an S-Corp. Even if the single member LLC has filed the 2553 for the LLC to be treated like an S-Corp, then for tax purposes, it is an S-Corp. So @newmillenniumbil which is it?
An S-Corp files it's own physically separate tax return using the 1120-S. The S-Corp issues K-1's to the owner(s) and the owner(s) will use that K-1 when completing their personal tax return on the 1040.
For the S-Corp return you have to use TurboTax Business which can be purchased at <a rel="nofollow" target="_blank" href="https://turbotax.intuit.com/small-business-taxes/">https://turbotax.intuit.com/small-business-taxes/</a>
Once the business return is done, filed and all tax reporting documents generated and provided to the owner(s), only then can you start your personal tax return using another flavor of TurboTax designed for 1040 personal returns. You can not use TurboTax Business for your personal return, because that program does not have any flavor of the 1040 required for completing and generating a personal return.
Right, but some users still refer to it as an LLC due to the way they organized it with the state Corporation bureau, even if they then elected S Corp status with the IRS.
<a rel="nofollow" target="_blank" href="http://www.thetaxadviser.com/issues/2013/dec/casestudy-dec2013.html">http://www.thetaxadviser.com/issues/2013/dec/casestudy-dec2013.html</a>
You and I know that. Just making things clear for the OP is all. 🙂
This may be semantics, but forr an LLC, electing S-Corporation taxation means the business will be legally identified as an LLC, but will be taxed by the IRS as an S-Corp. So my question should have been "Is your LLC taxed as a S Corp?"
A Sole Proprietorship (including a Single Member LLC that has NOT made an election to be taxed as a corporation) does not need to file any tax returns until your personal tax return is due in April 2018. However, you probably should be paying Estimated Taxes in the meanwhile.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes">https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes</a>
If the LLC DID file the form to be taxed as a corporation, the 'short answer' is to see a tax professional As Soon As Possible. It needs to file quarterly employer forms (you are required to be on payroll), and if you don't do things correctly, it can easily cost you thousands of 'extra' dollars for doing things wrong. In my opinion, every new corporate owner (including an LLC taxed as a corporation) should REALLY go to a tax professional BEFORE the business starts, and for AT LEAST the first year.