How do I file taxes for my LLC? This is my first time doing so and I don't know where to start.

[leeloo · Accepted solution]

The first step is knowing how you want your LLC to be taxed. If you are a sole proprietor, enter your income and expenses on Schedule C.

If there is more than one of you, you have to decide if you want to be taxed as a partnership or corporation. You will need the Business Program for either of those options. 

If you are solo and do not wish to incorporate, the default status is as a self-employed person. 

[DoninGA]

What type of LLC are you filing? 

A single member LLC that has not incorporated to an S Corp? 

Or a single member LLC that has incorporated to an S Corp? 

Or a multi-member LLC which is a Partnership?

[hemanikalia]

A single member LLC that has not incorporated to an S Corp. A S Corp would not be the most beneficial for my businesses at the moment, so I believe I am looking to just do a personal tax return that includes my LLC. I am the only employee and 100% owner, and I have 1099-K forms for my businesses. @DoninGA 

[VolvoGirl · Accepted solution]

If it is not an S corp. it is a disregarded entity and you file it on Schedule C in your personal return as self employment .

You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium or use any of the Desktop CD/Download programs.

How to enter self employment income

https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/...

Actually I would just enter your total income as Other self employment income or as Cash or General income.  You don't need to get a 1099NEC or 1099Misc or 1099K.  Even if you did you can enter all your income as Cash.  Only the total goes to schedule C.

You use your own records.  You are considered self employed and have to fill out a schedule C for business income.   You use your own name, address and ssn or business name and EIN if you have one.   You should say you use the Cash Accounting Method and all income is At Risk.   

After it asks if you received any 1099Misc or 1099NEC it will ask if you had any income not reported on a 1099Misc. You should be keeping your own records.  Just go through the interview and answer the questions.   Then you will enter your expenses.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center

Pulication 334, Tax Guide for Small Business

http://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses

http://www.irs.gov/pub/irs-pdf/p535.pdf

[hemanikalia]

Thank you for all this great information.

I am thinking of paying for either TurboTax Assisted or Full Service to help with taxes for this season, as it will be my first time filing the business taxes as well.

Which plan would you recommend? @VolvoGirl 

[DawnC]

You can start out in TurboTax Assisted and upgrade later if you want to.   You can compare them here.  

Full Service $100 back offer

TurboTax Live

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How does being self-employed affect my taxes?