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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I just started a new single member LLC and filed for S-corp

Customer Question

I just started a new single member LLC and filed for S-corp status for tax purposes..
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: does my income have to be payed you my LLC EIN to take advantage of this
JA: Is there anything else the Accountant should be aware of?
Customer: currently my income comes to me thru my personal SSN as 1099
Submitted: 30 days ago.
Category: Tax
Expert:  emc011075 replied 30 days ago.

Hi. My name is ***** ***** I will be happy to help you.

A single member LLC without S/C Cor election is disregarded entity for tax purposes, meaning the owner and the business is the same entity. As such it doesn't mater if the income is received under EIN or your SS#. However, single member LLC with S corp election is a separate entity and business income MUST be reported with EIN number. If you are receiving income with your SS#, the income will be treated as solo proprietor income, not S-copr income and you will have to file Schedule C for that income.

Expert:  emc011075 replied 30 days ago.

In addition, once Scorp status is granted (you will receive a letter from the IRS), you will have to treat yourself as employee of your own corporation, meaning you will have to receive a paycheck from your Scorp. If the income is coming to you, instead of your Scorp, your business will not be able to make quarterly payroll payments.

Any questions?

Customer: replied 30 days ago.
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Customer: replied 30 days ago.
I will need to send in payroll taxes quarterly to the IRS based on the paychecks I pay myself during the preceding Quarter?
and withhold FICA FUTA ?
Customer: replied 30 days ago.
can I figure out my pay check at the end of the year when I file my corp tax return...which is due in March? and then I do my personal return in April
Expert:  emc011075 replied 30 days ago.

Yes, that's correct. You will need to file quarterly payroll return and pay payroll taxes. You cannot pay it all in April.

Expert:  emc011075 replied 30 days ago.

You have to treat yourself as employee of your own corporation. If your payroll taxes are less than $1000 (you paid yourself less than $6500), you may not need to file quarterly payroll returns, instead you can file annual payroll return and pay all payroll taxes by January 31. But this is only for federal FICA and FUTA. Most states will not give you the option and require quarterly filing.

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