From the course: Running a Web Design Business: Defining Your Business Structure
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Understanding federal tax obligations
From the course: Running a Web Design Business: Defining Your Business Structure
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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Contents
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Getting started with a name for your LLC2m 52s
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Filing the Articles of Organization3m 53s
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Creating an operating agreement1m 10s
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Obtaining local licenses or permits1m 10s
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Applying for a city business tax receipt5m 47s
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Applying for a county business tax receipt2m 37s
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Understanding tax election for LLCs5m 30s
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Applying for an Employer Identification Number (EIN)4m 5s
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Opening a business bank account1m 58s
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Understanding state tax obligations57s
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Understanding federal tax obligations2m 2s
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