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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117370
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I started a business in Oct 2012. My profit for the business

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I started a business in Oct 2012. My profit for the business Oct-Dec was approximatley $4000, my expense was approximately $34000 for a net loss of 30K. I was also employed with another job and had 80K for income. Do I have to file taxes on my business? It is an LLC. If so, do I combine and file on one return? Can my business loss help offset my income tax paid with the other job? Any direction would be helpful. I normally file my own taxes without a CPA.
You still have to fill out a K-1 for you with your LLC losses and you still have to file an LLC tax return with the losses. You would then declare the loss on your personal taxes from the K-1 form (like a 1099 for a member of an LLC). Yes, the business loss will likely qualify you for a refund for anything you paid from your employment.

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Customer: replied 4 years ago.

So, is this 2 separate tax returns I will file or can it be done together? If separate and I file my normal tax return, will I just include the business loss on my personal return? Is this simple enough that I can do on my own as I have in the past, or in this situation is it better to use a CPA?



The LLC files a tax return, but pays no taxes unless they have elected to be taxed as a corporation. They issue a K-1 form instead which is like a 1099 for members. Then you file your normal return and you add in a Schedule C listing your profits/losses from the LLC. It is better with the LLC to use a CPA.
Customer: replied 4 years ago.

One more clarification and I think I will be complete. Can I go ahead and file my tax return and include the loss from the LLC or does the LLC return have to be complted first, before I can claim the loss on my return?



The LLC return does not have to be filed first, but you need to figure out the LLC tax return to have your profit/losses from the LLC and if not you will not have a proper calculation of your loss.
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