I am the sole owner of an LLC and took no formal salary for 2010. I also did not pay any estimated taxes. I am trying to prepare my own return this year and want to know what forms I have to file?
I got a 1099 from my merchant company for monies earned.
Do I need a Schedule C or E? Also, do I file an annual unemployment form? Even if I did not pay any salary.
A single member LLC can file either a Schedule C with your personal taxes or
you can file the forms used by an S-corp. The fact that you didn't pay
estimated taxes may or may not affect your tax liability. You will find out
when you complete your return. It depends on your total income less expenses.
If you are using tax prep software, it will walk you through the steps to
fill out the Schedule C.
I am not sure what an "annual unemployment form" is. If you are a single
member LLC you can't collect unemployment payments based on earnings you
didn't have. If you are thinking of self-employment taxes, your tax prep
software will calculate that for you. If you had income, then you must pay
self-employment tax. Paying yourself a salary is irrelevant for tax purposes.
BizResearcher | Window Shopper | 4/10/2012 - 1:37 pm
you can file the forms used by an S-corp. The fact that you didn't pay
estimated taxes may or may not affect your tax liability. You will find out
when you complete your return. It depends on your total income less expenses.
If you are using tax prep software, it will walk you through the steps to
fill out the Schedule C.
I am not sure what an "annual unemployment form" is. If you are a single
member LLC you can't collect unemployment payments based on earnings you
didn't have. If you are thinking of self-employment taxes, your tax prep
software will calculate that for you. If you had income, then you must pay
self-employment tax. Paying yourself a salary is irrelevant for tax purposes.
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