Do I file taxes for a business (LLC) and personal taxes separate, or are they lumped together?
I just set up an LLC for a rental property this year. When filling out taxes, do I do taxes for the business (LLC) and personal taxes separate, or are they lumped together? Are there additional separate taxes that are required for an LLC?
Answers
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Hi Bootaxes,
For purposes of taxes, the IRS treats a single-member LLC as a "disregarded entity" in most situations. This means that you will report the rental information on your personal tax return under the Rental Income section.
The following link describes single-member LLC situations and how the IRS treats each situation:
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What if it is a multi member llc? I set it up (50/50 ownership) with my husband.
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The following IRS link describes when a LLC with spouses is treated as a "disregarded entity" and when it is not.
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Thank you
