Remember with an LLC you are required to pay taxes each year on the corp.
No your not.
Generally, when an LLC has only one member, the fact that it is an LLC is ignored or ÃƒÂ¢Ã¢â€šÂ¬Ã…â€œdisregardedÃƒÂ¢Ã¢â€šÂ¬Ã¯Â¿Â¾ for the purpose of filing a federal tax return.
Remember, this is only a mechanism for tax purposes. It does not change the fact that the business is legally a Limited Liability Company.
If the only member of the LLC is an individual, the LLC income and expenses are reported on Form 1040, Schedule C, E, or F.
Most LLCs with more than one member file a partnership return, Form 1065. If you would rather file as a corporation, Form 8832 must be submitted. You donÃƒÂ¢Ã¢â€šÂ¬Ã¢â€žÂ¢t need to file a Form 8832 if you want to file as a partnership.
LLCs filing Schedule C or F
Members of LLCs filing Schedule C or F are subject to self-employment taxes on earnings.
LLCs filing Partnership Returns
Generally, members of LLCs filing Partnership Returns pay self-employment tax on their share of partnership earnings.
There is a special rule for members who are the equivalent of limited partners. They pay self-employment tax only if the LLC pays them for services.
Use Schedule SE (Form 1040) to figure the tax due on net earnings from self-employment.