New LLC

[Glow22]

How do I report my expenses through my LLC... Is there a special form I need? I know when I registered I selected a single member LLC option regarding tax filing. However, during initial set up and other things I had to spend some personal funds to get the business started and even for some marketing efforts so how do I identify those expenses from my personal pocket that did not run through the business bank account?

[Gabriella_EA · Accepted solution]

Hello Glow22!

Thanks for joining us for the event today, and for your great question!

A single member LLC that is not set up as an S-Corp is filed with your individual income tax return on Schedule C. It is a special form you fill out that reports all the business income and expenses for the year, but when you file through TurboTax, we'll ask you all the questions needed so that the form gets filled out and filed with your individual income tax return - it's not something you have to prepare separately outside of TurboTax.

When you're getting ready for tax time, it's a good idea to go through all the business income and expenses for the year and tally up the totals for each category (ie. marketing, supplies etc.). We typically refer to this totals page as a "profit & loss" and you can either use bookkeeping software or a free online template to put this together if that works well for you. This will make filing your return in TurboTax that much quicker and easier!

It is okay to include expenses that were spent from your personal account and not from a separate business account, as long as the expenses were for ordinary and necessary business expenses. Keep track of your receipts so that you can prove what you purchased, when, and even why it was a business expense. While you don't send the receipts with your return when you file it, keeping these is to provide proof in the event of an unexpected audit.

Congratulations on your new business! We're here to help you succeed with that!

[JanetB21]

Hello Glow22, Thanks for joining the event!

A single member LLC will report income and expense on their personal tax return as self-employment unless an election has been made to be another tax entity.  While you may have expenses that have come from a personal account, you can keep your records in a manner that will take those business expenses into account.  There are often start-up expenses as you begin a new venture.  This is a great resource on start-up expenses for your reference:
https://turbotax.intuit.com/tax-tips/small-business-taxes/startup-business-tax-tips/L7SOyYMzr

While it is always preferable to keep your business and personal expenses separate, having spent money from a personal account does not disallow  you from taking these legitimate business expenses.  As the article above emphasizes – keep good records!

Best Wishes on your new business!
JanetB211

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