LLC Operating Income is taxed how?

How is the LLC operating income taxed? The tax side is way different… BAD.  A single member LLC is a “disregarded” entity.  Thus, the LLC would not do a separate tax return as would a corporation.  The owner (now you know to say member) would account for the income exactly as a sole proprietor on a Form 1040 Schedule C.  But, the member gives up the opportunity to save on payroll taxes versus self-employment tax (the main reason for “S” corps).  That’s BAD.

There is more information on LLC’s on our website www.USATaxHelp.com

This entry was posted on 4. February 2009 at 04:25 and is filed under LLC's. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.