S corp status:Electing S corp status (usingForm 2553) can help LLC owners save on self-employment taxes. Profits and some losses are passed through to owners’ personal tax returns and taxed at individual rates, but only salaries drawn from the business are subject to self-employment tax. Em...
Wondering if you need to file taxes even if your LLC didn’t earn any income? Learn whether you need to file and how to file taxes for an LLC with no income.
How Is an LLC Taxed? The default tax situation for an LLC is that it doesn’t pay federal income taxes directly. Instead, its profits go straight to the owners, who then report this money and pay personal income and self-employment tax on their earnings. This process is known as “pass...
How to write off travel expenses on your taxes Even if you go on a trip for business purposes, incorrectly filing your tax deductions could stand in the way of a write-off. To ensure the IRS covers every expense, plan your write-offs before leaving and hold onto your receipts once you ...
As Margaret Mitchell (author of Gone with the Wind) once said, “Death, taxes, and childbirth. There’s never a convenient time for any of them.” But there’s a convenient time to learn how to file LLC taxes—like now for instance! Especially if you’ve recently started or are ...
No, the IRS doesn’t expect taxes just because there’s an EIN in place for an LLC. As the LLC owner, it’s your responsibility to report any income. Or, if there’s no income and you want to write off expenses, then you could also file in that case. But if there’s no ...
If an LLC is not closed correctly, members may still be liable for taxes, fees, or lawsuits. Involuntary dissolution can occur if an LLC fails to meet state compliance requirements. There are additional considerations such as handling remaining assets, notifying creditors, and obtaining tax clearanc...
You didn’t start a business to calculate taxes. Luckily, experienced financial professionals such as chartered public accountants (CPAs) can take the job off your plate. Ask your current bookkeeper for recommendations, or check if your accounting software lists trusted tax specialists. When choosi...
Privacy: Ideal for investors desiring anonymity, LLCs don’t require public disclosure of ownership details. Disadvantages Liability exceptions: Personal liability protection doesn’t apply to fraud or corporate misconduct. Self-employment taxes: Often waived for corporations, you’ll likely be on the ...
Taxes for bloggers should be handled as if you're running a small business. Here's my detailed guide on how to do taxes on blog income (and blog tax tips).