☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Oct 25, 2023 11:54:13 AM

New Business Owner

I've created a single member LLC in Oregon. Will I be taxed on the total net profit generated from my business or just the amount that I take through an owner's draw? 

0 1 128
1 Replies
Employee Tax Expert
Oct 25, 2023 12:01:25 PM

Congratulations on your new business, DrewE83! 

Since you are a single member LLC, if you have not elected to be treated as a corporation, then your business is considered to be a "disregarded entity" and you will report all income/expenses on a Schedule C on your individual return. Your income tax, SS and Medicare tax liabilities, and state income tax liability will be generated on your net profit, not just the amounts that you draw. Please see IRS info regarding Single Member LLCs for additional information.