filmov
tv
How to File Taxes for LLC that Made No Money
Показать описание
How to File Taxes for LLC that Made No Money
➡️ IRS Releases new inflation-adjusted tax Brackets for 2024
➡️ How to File 1099 Taxes
➡️ Big changes are happening to 401(k)s in 2024
____________________________________________________________________________________________
Sometimes, LLCs don't make any money, especially when they're just starting or when they're not active anymore. But even if they're not making money, they might still need to do some paperwork for taxes.
Now, whether you need to do this paperwork depends on how the government sees your LLC for tax purposes. Your LLC might be seen as a separate business entity, like a corporation or partnership. Or it might not really be seen as its own thing at all for tax purposes.
If your LLC is seen as its own thing, you might still need to fill out tax forms even if you're not making money. It can be a bit confusing, but it's important to know what you need to do to follow the rules. Remember, even if your LLC isn't making money now, it's still important to keep up with any paperwork or requirements from the government.
MAIN WAYS
When you have an LLC, there are three main ways you might have to pay taxes. First, if you're the only owner, the IRS might just look at you and your LLC as the same thing. This means you'd pay taxes like a sole proprietorship. Second, if there's more than one owner, you might be taxed like a partnership.
Now, here's where it gets a bit tricky. You can also choose to be taxed differently by making an election. For example, you could choose to be taxed like an S corporation or a C corporation. If you choose S corporation, you'll need to fill out Form 1120S. If you choose C corporation, it's Form 1120.
But wait, you might not have to make any choice at all. Sometimes, you can just stick with whatever tax status you have by default. For single-member LLCs, this usually means taking care of your taxes through something called Schedule C.
So, to sum up, there are different ways your LLC might be taxed, depending on how many owners there are and the choices you make. It's important to understand these options and if you need help in tax filing for LLC you check out the link in description.
IMPORTANT CHOICES
Alright, let's talk about some important choices you might have to make when you have an LLC. When there's only one person running the show, the IRS sees the LLC and that person as pretty much the same thing. This means all the money stuff, like expenses and income, gets reported on that person's individual tax return. No extra paperwork needed for the business itself—just the regular tax forms you'd fill out anyway.
Now, if there are two or more people involved, things change a bit. The IRS automatically sees this as a partnership. That means you have to fill out a special form called Form 1065. It's not a tax payment form, though—it's more like a report to let the IRS know what's going on with the business. They'll use this info to make sure everything adds up correctly for everyone involved.
Partnerships don't pay taxes directly. Instead, any profits or losses get passed on to the partners, who then report them on their own tax forms. But here's the interesting part: Your LLC doesn't have to stick with this partnership setup. It can choose to be taxed like a corporation instead.
If that sounds like a better deal, there are a couple of options. You can go for an S corporation or a C corporation. To make this change, you'll need to fill out some more forms and let the IRS know about your decision. For an S corporation, it's Form 2553, and for a C corporation, it's Form 8832.
DISREGARDED ENTITY
If you're running an LLC all by yourself, the IRS sees you and your LLC as pretty much the same thing. You might have your LLC for legal stuff, like protecting your personal assets, but when it comes to taxes, it's all tied together with your personal taxes.
Even though legally your LLC exists separately, for taxes, the IRS says, "Hey, you're one and the same." This means all your LLC's money stuff—like what it earns and what it spends—gets reported on your personal tax forms. There's this thing called Schedule C where you list all your business income and expenses.
Now, if your LLC doesn't make much money—like less than $400 a year—you might not even have to bother with Schedule C. But if it does make more than that, you've got to fill out Schedule C to report your business earnings and expenses.
➡️ IRS Releases new inflation-adjusted tax Brackets for 2024
➡️ How to File 1099 Taxes
➡️ Big changes are happening to 401(k)s in 2024
____________________________________________________________________________________________
Sometimes, LLCs don't make any money, especially when they're just starting or when they're not active anymore. But even if they're not making money, they might still need to do some paperwork for taxes.
Now, whether you need to do this paperwork depends on how the government sees your LLC for tax purposes. Your LLC might be seen as a separate business entity, like a corporation or partnership. Or it might not really be seen as its own thing at all for tax purposes.
If your LLC is seen as its own thing, you might still need to fill out tax forms even if you're not making money. It can be a bit confusing, but it's important to know what you need to do to follow the rules. Remember, even if your LLC isn't making money now, it's still important to keep up with any paperwork or requirements from the government.
MAIN WAYS
When you have an LLC, there are three main ways you might have to pay taxes. First, if you're the only owner, the IRS might just look at you and your LLC as the same thing. This means you'd pay taxes like a sole proprietorship. Second, if there's more than one owner, you might be taxed like a partnership.
Now, here's where it gets a bit tricky. You can also choose to be taxed differently by making an election. For example, you could choose to be taxed like an S corporation or a C corporation. If you choose S corporation, you'll need to fill out Form 1120S. If you choose C corporation, it's Form 1120.
But wait, you might not have to make any choice at all. Sometimes, you can just stick with whatever tax status you have by default. For single-member LLCs, this usually means taking care of your taxes through something called Schedule C.
So, to sum up, there are different ways your LLC might be taxed, depending on how many owners there are and the choices you make. It's important to understand these options and if you need help in tax filing for LLC you check out the link in description.
IMPORTANT CHOICES
Alright, let's talk about some important choices you might have to make when you have an LLC. When there's only one person running the show, the IRS sees the LLC and that person as pretty much the same thing. This means all the money stuff, like expenses and income, gets reported on that person's individual tax return. No extra paperwork needed for the business itself—just the regular tax forms you'd fill out anyway.
Now, if there are two or more people involved, things change a bit. The IRS automatically sees this as a partnership. That means you have to fill out a special form called Form 1065. It's not a tax payment form, though—it's more like a report to let the IRS know what's going on with the business. They'll use this info to make sure everything adds up correctly for everyone involved.
Partnerships don't pay taxes directly. Instead, any profits or losses get passed on to the partners, who then report them on their own tax forms. But here's the interesting part: Your LLC doesn't have to stick with this partnership setup. It can choose to be taxed like a corporation instead.
If that sounds like a better deal, there are a couple of options. You can go for an S corporation or a C corporation. To make this change, you'll need to fill out some more forms and let the IRS know about your decision. For an S corporation, it's Form 2553, and for a C corporation, it's Form 8832.
DISREGARDED ENTITY
If you're running an LLC all by yourself, the IRS sees you and your LLC as pretty much the same thing. You might have your LLC for legal stuff, like protecting your personal assets, but when it comes to taxes, it's all tied together with your personal taxes.
Even though legally your LLC exists separately, for taxes, the IRS says, "Hey, you're one and the same." This means all your LLC's money stuff—like what it earns and what it spends—gets reported on your personal tax forms. There's this thing called Schedule C where you list all your business income and expenses.
Now, if your LLC doesn't make much money—like less than $400 a year—you might not even have to bother with Schedule C. But if it does make more than that, you've got to fill out Schedule C to report your business earnings and expenses.
0:09:38
0:07:07
0:04:43
0:04:06
0:00:48
0:09:49
0:07:32
0:10:06
0:00:35
0:15:25
0:03:04
1:12:26
0:09:38
0:15:54
0:03:29
0:14:19
0:06:42
0:13:28
0:08:15
1:02:18
0:00:52
0:00:48
0:07:19
0:08:17