Single Member LLC as S Corp

Forum|Forum|5 years ago
March 8, 2021
1 reply
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Hi,

I have a single member LLC and I have elected it to be taxed as an S Corp. I also have a full time job and I have a w-2 for it. A couple of questions:

1. I am using TurboTax business for my LLC and have selected the option "S Corp". It's asking me if I have paid anyone including a shareholder. Since I am the sole owner and I do the actual work, do I become the shareholder and therefore I have to create a W2 or 1099 for myself? If so, which one do I create (W2 or 1099)?

2. Also, how do I transfer income from my business filing to the personal one?

Best answer by Anonymous_

You create a W-2 for yourself since you are technically an employee of the corporation (hopefully, you have been paying yourself a salary and withholding federal and, possibly state tax).

The income is transferred when you enter the information from your K-1 into your individual income tax return (a K-1 will be generated in the process of preparing the 1120-S).

Anonymous_Answer

Level 15

You create a W-2 for yourself since you are technically an employee of the corporation (hopefully, you have been paying yourself a salary and withholding federal and, possibly state tax).

The income is transferred when you enter the information from your K-1 into your individual income tax return (a K-1 will be generated in the process of preparing the 1120-S).