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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15732
Experience:  15years with H & R Block. Divisional leader, Instructor
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If I am going to hire a household employee and want to form

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If I am going to hire a household employee and want to form an LLC to do so, how do I file for that LLC? I know household employees usually get filed on a Schedule H, however the LLC is not on the schedule H.
JA: The Expert will know how to help. Is there anything else important you think the Expert should know?
Customer: I want to set up the LLC to protect myself from liability, therefore I need to know what option to choose on the IRS site when obtaining an EIN number.

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.

An LLC is for a business entity . An LLC with only one member files a Schedule C to report the income received through the business activity.

It is true that you can pay a household employee through your business you do not set up a business just for this purpose.

A sole proprietor or single member LLC who must file Form 940 (PDF), Employer's Annual Federal Unemployment (FUTA) Tax Return, and Form 941 (PDF), Employer's QUARTERLY Federal Tax Return, or Form 944 (PDF), Employer's ANNUAL Federal Tax Return, for business employees, may report household employee tax information on these forms instead of on Schedule H. If you choose to report the wages for a household employee on the forms shown above, be sure to pay any taxes due by the date required based on the form, making federal tax deposits if required.

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Customer: replied 1 month ago.
I'm still confused a bit. If the LLC is only created for the household employee (to offer protection against me personally from my household employee slipping and falling and suing me) am I able to deduct the taxes I pay on my personal return that are filed with the 940, 941 ,944 etc?

No those would be deducted by the business but if you have no income to the business it is not a business.

You cannot form a business just to hire a household employee.

If you do have a legitimate business you can run the household employee taxes through the business but you must have an actual business purpose to form an LLC..

If you want protection from injury then look to insurance for the person performing duties in your home.

Please let me know if you need more information.
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