NJ Single-Person LLC

[EdwardjK]

Hi. I formed a single-person LLC in New Jersey. For Federal tax purposes, I elected to disregard the LLC and will file Form C on my personal Form 1040. But I am not sure what to do for my New Jersey tax return. Does NJ recognize a single-person LLC? Or do they too disregard it for income tax purposes?

Also, do I pay the employer and employee Social Security taxes with Form SE or does should I pay those through the LLC?

Thanks!

[vangogh]

Welcome to the forum Edward. Sorry no one has responded to your question yet. I'd like to tell you I have a great answer for you, but taxes aren't my speciality. I wanted to reply though, so your thread is active again and hopefully comes to the attention of someone who can help better than I can.

I did search a little and found this forum thread (http://biztaxtalk.com/node/12). Search the page for "nj" and someone had a similar question as you that was answered. I also found the website for the Department of Treasury in New Jersey. Here's the home page for the Division of Taxation (http://www.state.nj.us/treasury/taxation/). I didn't find anything specific to your question in my limited searching of the site, but I'm guessing there's either an article or a phone number where you can reach someone.

Sorry I couldn't help more, but hopefully I did manage to bring your thread to the attention of someone who help more than I did.

[Evan]

Yes, New Jersey acknowledges the single-member LLC as a disregarded entity and the information from your federal 1040 and Schedule C will flow through to the New Jersey forms.

As a single-member LLC, you are not a common law employee, so you don't pay yourself on payroll -- but if you have any employees, THEY should be on payroll (meaning you need to withhold, report, and also carry worker's compensation insurance). As you are not an employee, 15.3% of your net income will essentially be subject to self-employment taxes as if that was your payroll.