Pennsylvania Single Owner LLC Simple Tax Questions?
Pennsylvania Single Owner LLC Simple Tax Questions?
I set up a new business as a single owner LLC in PA and I am doing my taxes myself. Haven't made much money until recently - and I am looking to file at the end of the year. #1 What tax forms do I file? #2 Am I taxed on the money I leave in the business account? #3 I have a few independent contractors working for me, and I made them fill out W9 forms...how do I handle that on the tax forms - do I have to 1099 them?
Thank you!!
Answers:
Chosen Answer
v b: The IRS doesn't look at the LLC. If all you did was file an LLC in PA and didn't incorporate or elect to be an S-corp, then as a single owner, you would file a schedule C. There is a line on the schedule C for listing the money paid out to independent contractors. Any IC that you paid $600 or more, you must issue them a 1099-Misc. (You are allowed to issue the 1099-Misc for smaller amounts too...whether or not they get a 1099-Misc from you they are required to report ALL income they received.) You are not taxed on the money in the business account. If it pays interest, be sure to include that as income.
2007-12-10 12:15:19
v b: The IRS doesn't look at the LLC. If all you did was file an LLC in PA and didn't incorporate or elect to be an S-corp, then as a single owner, you would file a schedule C. There is a line on the schedule C for listing the money paid out to independent contractors. Any IC that you paid $600 or more, you must issue them a 1099-Misc. (You are allowed to issue the 1099-Misc for smaller amounts too...whether or not they get a 1099-Misc from you they are required to report ALL income they received.) You are not taxed on the money in the business account. If it pays interest, be sure to include that as income.
2007-12-10 12:15:19