Question about LLC's

Babyboy · #1 07-25-2010

I just want to make sure and get some advice from other people about this but when I apply for an EIN for the LLC I set up the website states I will be considered Single Member LLC (SMLLC) and classified disregarded entity for the purpose of filing a federal tax return. If I do not wish to take default classification I can elect corporate status or S-corporate status.

Is this right, should I be SMLLC?

jeffweico · #2 07-25-2010

Unless you have partners in the LLC, YES.

If you have partners, then the LLC must file a tax return.

If it is just you, then they are saying it is fine to report the income on your personal tax return (there is probably a form for this, or maybe they just use sschedule C). You may also have to pay FICA taxes on any earnings, since (in most cases) the income from an LLC is treated as wages.

The basic benefit of this is that there is less of a paperwork hassle. But if you are unsure of how to report this, then you will definitely want to hire someone to do your taxes so that you can stay legal.

Babyboy · #3 07-25-2010

Thank you, I just wanted to make sure I wasn't missing something. I have read the ebaystealth 3.0 back and forth and didn't see anything on it specifically.

GreenBean · #4 07-25-2010

It does not have that specific info. It's not the forum's place to give advice such as you are seeking. You should get O/S help from an expert. That's your responsibility, not the forum.