Have Tax Questions? Ask a Tax Expert for Answers ASAP
Since you are just starting out, I want to give you some excellent resources that available to you for free. Click here for Nevada’s Small Business Association. There is really great information on that site.
Another excellent source is Nevada’s S.C.O.R.E. Click here and you will see that many successful returned businessman and woman offer new start-ups counseling for free.
Your single member LLC is taxed like a sole-proprietorship, but has the legal advantages you know about when you formed the LLC.
You will file your Federal taxes using Schedule C.
Using Schedule C, you see what types of expenses are available to you.
The taxes you are responsible for consist of the ordinary income tax rates, but in addition, you will be required to pay self employment taxes that are roughly 15% per year on top of your ordinary income tax. Schedule SE explains the self employment tax.
It gets complicated on the State level. But generally speaking, if you plan to keep only one office in NV, and since Nevada does not have a personal income tax, you will not owe income tax to the State of NV. That can change though, and if you'd like to read through what does change the tax issue click here for an excellent explanation.
The self employment tax is the tax that will concern you the most. Trust me, I have to pay it, nobody wants to, but the IRS is really cracking down on small businesses right now, and it's best to be in compliance from the get go.
Along with answering your question, I gave you quite a large amount of information to read through, but it is very good information, and can really make or break your new venture. Keep very good records too, that is very important as well.
Should you require further clarification, please never hesitate to ask. It would be my pleasure to clarify issues related to your question.
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