In addition to income taxes, both LLCs and sole proprietorships might have additional tax responsibilities. No matter which business structure you adopt, you’ll need to pay payroll taxes if you have employees. You’ll also need to collect state and local sales taxes if you sell taxable goods...
LLCs have more options. You'll want toconsider them carefully. There are many kinds of LLCs and the IRS treats some of them differently. For example, the IRS automatically treats LLCs using the same "pass-through" rules as a sole proprietorship. The LLC doesn't pay taxes on business in...
Self-employed taxpayers likely need to pay quarterly tax payments and meet key IRS deadlines. Here’s a closer look at how quarterly taxes work and what you need to know when filing your tax returns.
A sole proprietorship is the simplest structure, where you report taxes on a Schedule C. An LLC is a legal designation to protect your personal assets but doesn’t change how you’re taxed unless you elect otherwise. Finally, an S-corp is a tax designation that can apply to various busine...
Said another way, the owners pay taxes for the LLC as a part of their personal tax return. How will my LLC be taxed? By default, a Limited Liability Company is taxed by the IRS based on the number of owners your LLC has: A Single-Member LLC is taxed like a Sole Proprietorship. A...
How a sole proprietorship works Types of sole proprietorships Sole proprietorship vs. LLC vs. C-corp How to form a sole proprietorship Pros and cons of sole proprietorships Examples of sole proprietorship Sole proprietorship taxes Starting your business with confidenceHow...
Sole proprietorship vs. LLC What is a C Corp? What is a certified B Corporation? How to apply The benefits of forming an S Corp What is a DBA and when to file one' An 84-year-old grandma turned her cooking skills into a business ...
Other LLC Taxes In addition to income tax, LLCs are subject to other federal, state, and local taxation. Social Security and Unemployment Taxes LLCs listed as sole proprietors or partnerships must pay a rate of 15.3% in self-employment taxes—including Social Security and Medicare—through...
Said another way, the owners pay taxes for the LLC as a part of their personal tax return. How will my LLC be taxed? By default, an LLC is taxed by the IRS based on the number of owners your LLC has: A Single-Member LLC is taxed like a Sole Proprietorship. A Multi-Member LLC ...
Visit ourLLC vs. Sole Proprietorshipguide for more details. What are the advantages and disadvantages of an LLC? Limited liability companies (LLCs) can protect your personal assets and increase your business’s credibility. An LLC is the simplest and most affordable legal business entity to form...