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Thread: How do we do taxes for our LLC?

  1. #1

    Default How do we do taxes for our LLC?

    My girlfriend and I are inching closer and closer to setting up an LLC for our acrobatics instruction business. I found a good website, LLC University, which says...

    Federal: LLCs are by default classified as “pass-through entities”. This means that your Oregon LLC does not file a separate tax return with the IRS. Instead, profits “pass through” to your personal tax return and are usually listed on a Schedule C (which is a part of your personal US 1040 return).

    If I understand this right then I can report everything on my personal taxes, but my girlfriend and I are in this 50/50. Can we both claim the business on our personal taxes?

    Thanks

    -Jacob

  2. #2
    Mr. Tax Man
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    That is for a single owner. You'll be taxed as a partnership. You'll need to file a Form 1065. When you apply for your tax ID, you'll select partnership. Good luck!
    Small Business CPA
    "A tax loophole is something that benefits the other guy. If it benefits you, it's tax reform."

  3. #3

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    I just registered my LLC. It asked if I wanted to file a BIN. Should I do this? We don't have any employees. It's just me and my girlfriend.

  4. #4

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    The IRS treats one-member LLCs as sole proprietorships for tax purposes. This means that the LLC itself does not pay taxes and does not have to file a return with the IRS. As the sole owner of your LLC, you must report all profits (or losses) of the LLC on Schedule C and submit it with your 1040 tax return.

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