Sunday, November 6, 2011

Which tax forms are required for LLCs?

You will use a Schedule C and possibly a 4562 to depreciate any equipment you purchased in 2007. You may want to consider using a tax preparer initially and as you learn more you may be able to do it on your own. EIN for an LLC is really only important if you're going to pay employees. A single owner LLC is a disregarded entity to the IRS so you could have just used your social security number. Unless you have requested special tax status of the LLC from the IRS you're only choice is to report it on your 1040/C. Also keep in mind that if your new business doesn't make a reasonable profit for 3 out of 5 years the IRS can reclify as hobby income and disallow the losses/deductions. You may want to go the irs website and download a few publications to get started. In Forms and Publications under publication number you can find Pub 583 Starting a Business and Keeping Records, Pub 587 Business Use of Your Home, Pub 946 How to Depreciate Propety. In addition in Forms and Publications under form number download the instructions for Form 1040 Schedule C and Form 4562. Good luck.

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