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Posted: 3/27/2024 8:19:28 AM EDT
Link Posted: 3/27/2024 8:41:08 AM EDT
[#1]
You as the sole member of the LLc pay the taxes.  Maximize your costs and deductions for the new LLC. Below is from Federal IRS.

If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. If the owner is an individual, the activities of the LLC will generally be reflected on:

Form 1040 or 1040-SR Schedule C, Profit or Loss from Business (Sole Proprietorship)  
Form 1040 or 1040-SR Schedule E, Supplemental Income or Loss
Form 1040 or 1040-SR Schedule F, Profit or Loss from Farming
An individual owner of a single-member LLC that operates a trade or business is subject to the tax on net earnings from self employment in the same manner as a sole proprietorship.
Link Posted: 3/27/2024 10:28:21 AM EDT
[Last Edit: NAK] [#2]
From the IRS standpoint, the previous posters comment about being treated as a disregarded entity is spot on (unless you want to create more complexity than you have too.)
You report all of the LLC revenue as your own income.  You will likely be getting 1099-NEC for the LLC EIN/TIN.  Then you play the IRS game of trying to reduce the amount that it taxable with allowable expenses against that revenue.  (This was a learning experience  my first year.)  You need to decide when you report income.  Your choices are to report revenue in the year you book the sale or you can choose to report revenue in the year you received payment. I chose the year the revenue is received, since that greatly simplifies things on my end.

You will also need to make quarterly estimated tax payments.  This is the expected Federal Income Tax + Self Employment Tax.

I am in Texas, so there is no tax on corporations unless you are over $1,000,000, and the reporting requirement is a one-page online form.

I found TurboTax more than adequate for my needs.  For 2023, took me about 4 hours to gather documents and enter everything.
Link Posted: 3/27/2024 5:18:02 PM EDT
[#3]
Link Posted: 3/27/2024 11:55:06 PM EDT
[#4]
Discussion ForumsJump to Quoted PostQuote History
Originally Posted By d16man:
Thanks yall.  I am already considered self employed by uncle Sam so I pay quarterly.  Since I get a w2 from work already (not an llc), would I file a 1040c along with my w2?  This new venture would solely be a side hustle.  It may not even work out, but if it does I want my ducks in a row.
View Quote



Yep,  your taxes are like before, plus the schedule C and maybe a few more deductions around home office.  The wife is a w-2 employee and I all my income gets filed on schedule C
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