Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

I own an llc, last year i put my business on my 1040 using a…

Customer Question
I own an llc...

I own an llc, last year i put my business on my 1040 using a schedule C. i paid my employees using contract labor. This year I paid using a W2 and I also paid myself using a W2 because I also work for the company I own. Will I be able to use a schedule C on my own 1040.

Accountant's Assistant: The Accountant will know how to help. Is there anything else the Accountant should be aware of?

That's all

Submitted: 4 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
3/21/2018
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 4 months ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA.

You are still a Schedule C as long as you do not elect to be treated as a C Corporation or S Corporation. Once you make that election, you would file either Form 1120 or Form 1120S.

Since you are a Schedule C, you are not supposed to file a W-2 for yourself. All your income is subject to self-employment taxes, so its like you are paying yourself a wage. For this year, I'd just deduct the salary and payroll taxes so they're not double reported on Schedule C.

Since you're already paying yourself a wage, you may want to consider electing to be treated as an S Corporation. As long as your wage is reasonable, it will allow you to reduce your self-employment taxes.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,276
1,276 Satisfied Customers
Experience: Adjunct Professor

Carter McBride is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I am working as an independent contractor for a university
I am working as an independent contractor for a university and have an LLC with C taxation election. The University refused to accept the W9 listing the LLC and informed me that I must complete the W9… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
If you paid yourself a wage (W2 income) can you deduct that
If you paid yourself a wage (W2 income) can you deduct that on a Schedule C as a sole proprietor … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
My son and I Incorporated our business last year to an LLC.
My son and I Incorporated our business last year to an LLC. He is the owner of the business and we have had payroll companies process payroll since the formulation of the company. The LLC is registere… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
I owned an LLC in 2015, sole proprietorship where I was the
I owned an LLC in 2015, sole proprietorship where I was the only employee. My CPA prepared my paystubs for me and on my paystub for my social security number, he put my company's EIN number, not my pe… read more
Lane
Lane
JD, MBA, CFP, CRPS
Doctoral Degree
47 satisfied customers
Lev, my name is***** work in a contracted job, with
Hi Lev, my name is***** work in a contracted job, with different companies.. that used to be all 1099 reported income. Recently however, because these companies also employee people full-time that do … read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
What the best way to file our taxes? My husband and I
What the best way to file our taxes? My husband and I normally file married filing jointly (home and business). 1) my husband has a trucking business (LLC) and he has 1 employee who's 1099--but he doe… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
Can a person incorporate themselves as a business?
Can a US Citizen "incorporate" themselves as a Business to provide consulting services and be a Consultant to a foreign company that has *no* presence in the US. The foreign company would pay an invoi… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
Based on your response, I decide to stay put in the Bay area
Based on your response, I decide to stay put in the Bay area and use the Tahoe house as the weekend home. I have a primary job working as an Electrical Engineer (W2 basis), and work on software develo… read more
Tax.appeal.168
Tax.appeal.168
Principal
13 satisfied customers
I am a contractor and have worked with 9 different companies
I am a contractor and have worked with 9 different companies that have legally said that I am a contractor through my work contract ; however, the 9 companies that I contracted for last year, all gave… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
I work as a freelance creative consultant. My tax home is in
I work as a freelance creative consultant. My tax home is in Sacramento, CA, but many of my contracts are in San Francisco, CA. Some of these contracts I am put on payroll for weeks at a time. Others … read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
Need to know where to enter employee wages +studentW2
Trying to use TaxCut to complete taxes, I can find no where in the program to enter wages I have paid to my children as employees (or ANY employee for that matter) - any help will be appreciated. I ha… read more
InfoTaxes
InfoTaxes
Owner
Bachelor\u0027s Degree
261 satisfied customers
A sole proprieter uses an employee leasing company to pay himself
A sole proprieter uses an employee leasing company to pay himself in which he recieves a w2 with proper social security payments. Does this need to be amended to reflect draws and in which self employ… read more
Jacy
Jacy
Bachelor\u0027s Degree
567 satisfied customers
I have an LLC that I own 100% of. During the year, I paid
I have an LLC that I own 100% of. During the year, I paid for health insurance for myself and my wife, who are both also employees of the LLC and got small paychecks. Do I enter the health insurance c… read more
RD
RD
Self Employed
Master\u0027s Degree
1,164 satisfied customers
I formed an LLC but advised to treated as an S-corp (filed
I formed an LLC but advised to treated as an S-corp (filed form 8832 and 2553 to file form 1120S) I am a single owner LLC 100% and my husband is my employee on payroll) how can I convert back to singl… read more
Wayne Brasch
Wayne Brasch
Accountant and Business Consultant
Master Degree
718 satisfied customers
Small Business - One Owner. Operating as a sole proprietor.
Small Business - One Owner. Operating as a sole proprietor. Incorporated 7 years ago. Have exchanged stock for operating cash. Have always filed 1040, Schedule C to report business profit/loss. Do I n… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
I am working on my 2007 1040 (I filed an extension and paid
I am working on my 2007 1040 (I filed an extension and paid the estimated tax). I am filing a joint return with my wife. I have a single member LLC with no employees and a handful of 1099 independent … read more
W. Reed
W. Reed
Master Tax Advisor Enrolled Agent
Master\u0027s Degree
10 satisfied customers
If I am an employee then why did i get a 1099-misc for wages
i was hired on in november and my employer paid me casual labor for 6-8 weeks and has given me a 1099-misc form for this. I am only 19 years old and do not own a business, i work for these people and … read more
Anne
Anne
Master Tax Preparer
2,345 satisfied customers
I am not self employeed but did contract work for an ...
I am not self employeed but did contract work for an attorney last year. She gave me a 1099Misc Tax Form and put my wages in box 7. I am trying to do my taxes but don't know where to put the amount of… read more
Guru_Guy
Guru_Guy
Doctoral Degree
1,634 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x