When I was in business for myself, I filed a Schedule C for my profit and loss. It was simple and I enjoyed the tax benefits of the losses I allowed to claim. As a freelance writer, I am giving 1099 forms to submit on my 1040 tax document. However, as an LLC, the game has changed. I will admit I was not prepared for the changes. I have always filed my own tax returns and planned on doing that again this year. So, I am enjoying a learning process on filing taxes for an LLC. There are different ways to file for an LLC so you have to read through all the information to find what suits your LLC. If this is your first year also, here are a few things I have learned.
If you are the sole member of an LLC, then for the tax filing purposes the LLC is disregarded. Being disregarded as an LLC does not change that you are legally a Limited Liability Company. It simplifies things when filing your taxes. You can use a Schedule C, E, or F to report on your 1040 for your profit and loss. The process is quite simple but make sure you have all your receipts to file accurately.
In my case, I have one business partner. By default, we are considered a partnership. If you want your LLC to be taxes as corporation you can file for 8832. If not, you will have to file form 1065 and a K-1. The 1065 is basically your profit and loss form. The K-1 acts like a 1099. Every member of the LLC will receive a copy for personal tax purposes and one copy will be filed with the IRS.
I have to be honest, this whole thing is making my head spin. If just hope I can file this all correctly.