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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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If I formed a single party llc and have income to the llc in

Customer Question

If I formed a single party llc and have income to the llc in 2015 an I correct I will get treated as follows-
"And an LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it files Form 8832 and affirmatively elects to be treated as a corporation."
As such do I just file as income? I have had a corporatiom before and I have given the EIN when requested but I believe this was wrong and on taxpayer requests I should have given my personal SSN? Is that correct?
Thank you..
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi - I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University’s Stetson School of Business and Economics, as well as CFP® and CRPS designations. - I can help here

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Yes, you have it exactly.

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You'll use the Schedule C, "Profit or Loss from Business," to report your single member LLC income and expenses.

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https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

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And yes you should use your Social Security Number for your tax reporting AND if someone asks you for a W-9 for so that they can provide you with a 1099-MISC if needed.

Expert:  Lane replied 11 months ago.

You can read more about that here: https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Single-Member-Limited-Liability-Companies

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From there:

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"A single-member LLC that is a disregarded entity that does not have employees and does not have an excise tax liability does not need an EIN. It should use the name and TIN of the single member owner for federal tax purposes. However, if a single-member LLC, whose taxable income and loss will be reported by the single member owner, nevertheless needs an EIN to open a bank account or if state tax law requires the single-member LLC to have a federal EIN, then the LLC can apply for and obtain an EIN."

Expert:  Lane replied 11 months ago.

The profit (or loss) from your schedule C will flow to line 12 (business income or loss) of your personal 1040.

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Hope this has helped … let me know if you have questions

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If this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by using the stars on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

Customer: replied 11 months ago.
I had an employee in early 2015, so I have EIN.. However I think that makes no difference in how I do MY income filing, correct? I understand the payroll tax implications, question is only on MY income.Also what form do I use to now submit MY withholding taxes if this is disregarded entity..I had some advice that part of my income would be normal employment income, not schedule C. Was that advice wrong?PS business is computer consulting if it matters.Thank you.
Expert:  Lane replied 11 months ago.

On the employee issue, that's right the EIN is not used for reporting ANY of your income ... a separate issue from the fact that you may have had an employee on payroll

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You are self employed and not part of that payroll.

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You'll pay your taxes through making quarterly estimated payments

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Here's the form for that (the vouchers are at the bottom of the document) ... Although if you use TurboTax or one of the other packages, these quarterly payment vouchers, your schedule C and your schedule SE will all be generated automatically, by your answering the questions in then data-gathering/interview part of the program:

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https://www.irs.gov/pub/irs-pdf/f1040es.pdf

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The advice you received is incorrect (or at least partially incorrect) ... Your income IS still in the earned/ordinary income category, but flows to your 1040 and becomes part of your AGI from line 12, rather than say, a W-2 employees wages reported on line 7, that also adds to AGI and ends up being taxed the same way.

Expert:  Lane replied 11 months ago.

Hope this has helped … let me know if you have questions

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If this HAS helped, (and you don’t have additional questions on this), I'd really appreciate your positive rating … (by using the stars on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

Expert:  Lane replied 11 months ago.

Did you see my answer to your follow-up question?

Expert:  Lane replied 10 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Did my answer help?

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Let me know…

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If this HAS helped, (and you don’t have additional questions on this),I'd really appreciate your positive rating …(by using the stars or rating request on your screen) … … That’s the only way I'll be credited a portion of what you've paid JustAnswer.

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Thank you,

Lane

Expert:  Lane replied 10 months ago.

Hi,

I’m just checking back in to see how things are going.

Did my answer help?

Let me know…

Thanks

Lane

Expert:  Lane replied 10 months ago.

Hi,

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I’m just checking back in to see how things are going again . We had a pretty god conversation there but you never came back in to clarify or rate.

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Let me know if you need more here?

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Thanks

Lane

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