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Single Member LLC - 941 and 940

Hi, I recently registered an LLC with me as single member disregarded entity. I applied for EIN and in the EIN document it says I need to file form 941 every quarter and form 940 every year.

My question is,

If I don't have any employees or any payrolls under my llc, do I need to still file these forms?

I'm not planning to have any employees at least a year except me. So can I simply submit schedule C and SE along with my early 1040 filing.

 

 

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Single Member LLC - 941 and 940

If you told the IRS that you would have employees when you got the EIN then they are expecting payroll tax forms to be filed even if they are all zeros.  If you don't then you may have to explain why you didn't later when the late filing bills start to come in.

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7 Replies

Single Member LLC - 941 and 940

Correct.  

Single Member LLC - 941 and 940

If you told the IRS that you would have employees when you got the EIN then they are expecting payroll tax forms to be filed even if they are all zeros.  If you don't then you may have to explain why you didn't later when the late filing bills start to come in.

Carl
Level 15

Single Member LLC - 941 and 940

I'm not planning to have any employees at least a year except me.

Just to clarify something here, though you may already know this.

You can not be an employee of a SCH C business (LLC) that you own, since an LLC is considered a disregarded entity. Under no circumstances will you issue yourself a W-2, a 1099-NEC or any other type of tax reporting document. So as the owner of an LLC, you will not and can not be an "employee" of that business. You are an owner of the business.

 

 

Single Member LLC - 941 and 940

@Critter-3 So I can file 0$ in all fields in both  forms. Correct?

Single Member LLC - 941 and 940

@Carl  Yes I understand that.

I’m not going to run any payroll as I’m not employee.

I will ask my clients to issue 1099 to my LLC which will pass thru to me so that I can file sch. c along with my 1040. I assume that is fine I guess?

Single Member LLC - 941 and 940

It's up to your clients if they give you a 1099NEC or not.  They should issue you a 1099NEC if they pay you 600 or more for the year.

 

But even if you get a 1099NEC  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.

 

Heres some general self employment information.......

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  Here's a Schedule C  https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

 

You can enter Self Employment Income into Online Deluxe or Premier but if you have any expenses you will have to upgrade to the Self Employed version 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/...

 

You will need to keep good records.  You may get a 1099NEC at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small and if you don't get the 1099NEC.

 

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

 

Publication 463 Travel, Gift, and Car Expenses

https://www.irs.gov/pub/irs-pdf/p463.pdf

 

Single Member LLC - 941 and 940

@scorp66 

 

YES ... file zero quarterly payroll returns to CYA.

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