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

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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.

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Submitted: 1 month ago.Category: Tax
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3/21/2018
Tax Professional: Carter McBride, Certified Public Accountant (CPA) replied 1 month ago
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,039
Experience: Adjunct Professor
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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!

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