New single-owner LLc and also having job in another company.?

Question

Would want to file tax return separately (PREFERED). One for personal and the other business. Reason for this, wanting to know how the amount tax on business income...shld there is.

Question: IS IT POSSIBLE and can I file 2 tax return??

Answer 1

Unless you incorporate (form a corporation - not a good idea unless you have an EXTREMELY good reason), your LLC income will be reported on a Schedule C and included into your 1040 income.  So you will pay tax on both your job and you company on the SAME return.

If sounds like this is your first self-employment opportunity, so be advised of a couple of things.  The gov't likes to get their share of your income as you make your money, so if you are making pretty good money on your LLC, you better either 1) start paying quarterly estimated payments, or 2) have a ton of extra money withheld from your job to cover the tax on your self-employment.  Also, understand that you not only have to pay income tax on your LLC profit, you have to pay self-employment tax also, which is both halves of social security and medicare taxes - so estimate another 15% of your profits to that.

If you really want to have your LLC file a separate tax return and be taxed separately on its income, you will have to either incorporate, or elect to be taxed as a corporation.  That would have the VERY bad side effect of double taxation - your corporation would be taxed, and the leftover, when paid to you, would be taxed again on your individual return.

You didn't say why you wanted your LLC to be separately taxed, but if it is not an EXTREMELY good reason, I wouldn't just because you are going to pay more if it is.

Answer 2

Buy tax preparation software.

Prepare taxes without LLC income (just don't file it!).

Add in LLC income on schedule C.

Compare the tax bill.

Decide if the 2nd income is worth it to you.

You cannot really file a separate tax return for the business unless you set it up as a C corporation--and then you get taxed twice.  Once as corporate income and then again when you distribute profit as dividends.

Answer 3

No, you will file only one tax return. Your business income is reported on schedule C and is subject to SE tax at 15.3%

Read more about self employed tax filing: http://taxipay.blogspot.com/2008/04/tax-...