From the course: Running a Web Design Business: Defining Your Business Structure

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Understanding federal tax obligations

Understanding federal tax obligations

From the course: Running a Web Design Business: Defining Your Business Structure

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Understanding federal tax obligations

In this last video on the chapter, we'll explore the federal tax obligations for an LLC and the related IRS forms. Let's take a look at the forms that an LLC needs to file with the IRS. First, any LLC filing as a disregarded entity, single member, must file form 1040 Schedule C like a sole proprietor. In contrast, an LLC as a partnership must file Form 1065, the partnership tax return, just like owners in a traditional partnership. An LLC filing as a C-Corporation needs to submit Form 1120, the corporation income tax return. And an LLC filing as an S-Corporation needs to submit Form 1120S, income tax return for an S-Corporation. Now we'll look at the federal employment taxes that an LLC must pay. This depends, of course, on how the LLC has elected to be taxed. In a single member LLC, also know as a disregarded entity, the sole owner is not considered an employee of the LLC. Just like a sole proprietorship, the owner needs to pay self-employment taxes on the entire net income of the…

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