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What's the best way to file Fed Income tax for a LLC?

a single-owner LLC. The LLC has its own FEIN (but no employees) and for liability reasons, I want to file the LLC's taxes separate from my personal taxes. How do I report income from the LLC and my personal income taxes (because I do have other sources of income) without being double taxed???

change username asked in Taxes 11 months ago | Report

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1 Answer

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    With an LLC, you can structure the entity to avoid double-taxation, as LLCs are often treated as pass-through entities by the IRS. However, an LLC can elect to be treated under different sections of the tax code, with different tax ramifications.

    An attorney should be able to easily determine how your LLC is treated under the tax code. Then, if you need help to prepare and file taxes, a CPA could do that for you.

    It also sounds like you are concerned with maintaining the liability shield of the LLC. This could be a concern if you fail to capitalize the LLC adequately or mix personal and business funds. However, a taxpayer might report LLC income and continue to limit liability - if the LLC follows correct business practices.

    An attorney can advise you how to limit your liability and correctly report income, based upon your specific circumstances.

    Sound Advocates PLLC answered in Taxes 11 months ago | Report
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