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LLC income vs. Personal Income

by lloydmc
7 replies
Hi,

quick question...

If all the net profits of my LLC goes into my pocket...

Do I file my taxes as both an LLC, as well as the person who gets paid by the LLC...

Or do I just file as the LLC?
#income #llc #personal
  • Profile picture of the author onSubie
    [DELETED]
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    • Profile picture of the author kindsvater
      Please ignore the prior post #2. In fact, if you have a tax question see an local accountant. (It is incredible how wrong information can be on this forum and elsewhere online.)

      General rule:

      A LLC is a pass-through entity, unlike a corporation. This means the LLC does not pay taxes but the owners do on their personal returns.

      The LLC still files its own informational return.
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      • Profile picture of the author onSubie
        Originally Posted by kindsvater View Post

        Please ignore the prior post #2.
        Deleted. LLC is not the same in Canada.
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      • Profile picture of the author Green Moon
        Originally Posted by kindsvater View Post

        Please ignore the prior post #2. In fact, if you have a tax question see an local accountant. (It is incredible how wrong information can be on this forum and elsewhere online.)

        General rule:

        A LLC is a pass-through entity, unlike a corporation. This means the LLC does not pay taxes but the owners do on their personal returns.

        The LLC still files its own informational return.
        Sorry, but the last line of that response is completely WRONG if you have a single-member LLC.

        A single member LLC is treated as a disregarded entity by the IRS. It does not file its own informational return. You report the income on your own Schedule C of your Form 1040 just as if the business were a sole proprietorship.

        The best information in the quoted post is "It is incredible how wrong information can be on this forum and elsewhere online."
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        Find an Accountant | Tax Help
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  • Profile picture of the author pewpewpewmonkeys
    ^ yeah, so, very little of that is actually true.

    "LLCs are not taxed as a separate business entity."

    6 Things You Need to Know About Your Tax Responsibilities as an LLC | SBA.gov
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    Some cause-oriented hackers recently hacked one of my websites. So I researched what they're about and then donated a large sum of money to the entity they hate the most.

    The next time they hack one of my websites I'm going to donate DOUBLE.
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  • Profile picture of the author BradVert2013
    Ditto what others said. Talk to an accountant. I have an LLC and it gets complicated pretty fast. A good one can save you a lot of money. But so much depends on what state you live in and other factors.

    Whatever advice you get here take with a big grain of salt.
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  • Profile picture of the author lloydmc
    Thanks for the input fellas.

    And just to clear the confusion: My LLC is in New York State.

    There should be a handy-dandy book for people who start processing transactions on a regular basis.

    I've got me a whole forest of links to Paypal and IRS pages that i have to tackle... wish me luck!
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  • Profile picture of the author hustlinsmoke
    Lol great place to get legal advice. I will send some money to you for toiletries while your in the federal pen lol.
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