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I have a single owner LLC with self employment income opened…

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hello..i have a single owner...
hello..i have a single owner LLC with self employment income opened in 2015 and which i am filing taxes every year.. Recently due to tax law changes i opened a S corp additionally and filing date is Jan 4th,2018. I have also filed IRS Form 2553 with IRS for the same.. Due to filing status as head of household in 2016 and 2017 (two dependent children) , my net tax rate is around 18% and 4.5% VA state tax. I also pay alimony and child support. My business expenses are around1, Should i need to start receiving income through S corp instead of LLC and file corp & W2 income in 2018.Would that make any big difference in my taxes for 2018.
Submitted: 4 months ago.Category: Finance
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Answered in 5 minutes by:
3/19/2018
Financial Professional: bkb1956, Finance Enthusiast replied 4 months ago
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,376
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The tax law changes that went into effect as of January 1, 2018 would have benefited you as a sole proprietor. You did not have to elect S corporation status.

As an LLC, you used Schedule C of your 1040 to report your income and expenses.

An S corporation files its own tax return (Form 1120S), but it does not pay tax. A Schedule K-1 is generated from the S corporation, and that information is entered on your personal tax return.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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