Question

Single member LLC

Forum|Forum|4 years ago
October 27, 2021
2 replies
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I started a single member LLC in May of 2020 and have made less than $500 this year, I do not have a business account my business is ran via social media. Not sure what steps I should be taking to file taxes this year or if a certain form is needed. Also I filed for my LLC in Ohio 2020 but currently live in Florida don’t know if that makes a difference I am very new to all of this

Michele_H

Hi @ICollins19 , you would report your income and expenses on a Schedule C (self-employed section in TurboTax). You will report your income and expenses under the state where they are earned. You should consider researching the state laws for each of the states to help determine if you should move your LLC to Florida or keep it based in Ohio.

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O

OpeA1

The first step is to understand how the IRS regards your LLC and then report your income.

The key to determining if you’re self-employed is to assess whether you're in business for yourself or are the owner of your own business.

This includes any part-time businesses or private “side jobs” where you’re performing services in addition to a regular job or business.

You are also self-employed if you’re an individual who:

is the sole proprietor of an unincorporated business
works as an independent contractor, consultant or freelancer
is a member of a business partnership
owns or is part of a limited liability company (LLC)
earns income through investments
earns income through rental property

You may not think of yourself as running a business, but you’re considered self-employed if you engage in business-like activities.

When you’re self-employed, you’ll receive a 1099-NEC, 1099-MISC or a 1099-K from the person or business that paid you.

But even if you don’t receive a 1099-NEC, 1099-MISC or a 1099-K, you’re still responsible for reporting all your income and expenses from self-employment on your tax return.