I started an llc company. What do I need to do this year?
Best Answer
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Hi WaltGrimm,
Congrats on the new LLC!
Assuming your new LLC is a Single Member LLC, for income tax purposes that will be just as if you are a Sole Proprietor filing a Schedule C, Profit or Loss form Business (Sole Proprietorship).
You will report your income and expenses on Schedule C, and self-employment tax on Schedule SE. FreeTaxUSA will guide you through the steps and create the forms you need based on your input.
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Answers
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Thank you!
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What if the LLC has been dormant all year? I did not do much with it except pay the LLC registration fees. Do I still owe tax or is there some sort of penalty?
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There is no penalty for not having any activity in your LLC. You generally only owe tax if you have net gain (Income - Expenses = Profit/Net Gain).
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