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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15731
Experience:  15years with H & R Block. Divisional leader, Instructor
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If I have a single member llc that is making a loss, do I

Customer Question

If I have a single member llc that is making a loss, do I still have to submit a schedule c?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.

Hello, I'm Robin. Welcome to JustAnswer. I'm reviewing your question now and typing up my reply. I'll post that in just a few moments.

Expert:  Robin D. replied 1 year ago.

The LLC is treated as a disregarded entity and the loss will flow to your personal return. You need to show the Gross income on the Schedule C and your expenses so the IRS can see that you had a loss and does not treat the Gross as Net with tax applied.

Please let me know if you need clarification. If you do not then a positive 5 star rating is appreciated so I get credit for the response. (look for the STARS or SMILEY FACES)

Customer: replied 1 year ago.
Ok but if I am foreigner that opened up a US company from overseas. How do I go about doing my schedule c? I have an EIN.
Expert:  Robin D. replied 1 year ago.

You have to file a 1040NR form and attach the Schedule C to that.

The EIN is shown on the Schedule C.

Customer: replied 1 year ago.
Do I have to report my income on that? Because I also work full time in my country
Expert:  Robin D. replied 1 year ago.

The forms are available at irs.gov or you can have a tax professional complete them for you.

Your income not sourced to the US is not reported on the 1040NR.

Expert:  Robin D. replied 1 year ago.

Only your US sourced income is reported (the GROSS) and then the expenses.

Customer: replied 1 year ago.
I was actually setting up the turbo tax for this. Because inventory is what is making most of the loss where do I put that? When calculating the profit and loss it seems like there is only advertising expenses that is showing but not the inventory
Expert:  Robin D. replied 1 year ago.

Sorry for the delay, I had stepped out after I posted the last.

Your inventory is listed on the Schedule C under your cost of goods sold. To determine these costs, you must value your inventory at the beginning and end of each tax year.

You then list those on the Schedule C.