Married filing jointly, new LLC and W2

Forum|Forum|1 year ago
August 28, 2024
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Hi there - thank you for this forum! My husband started an LLC last November but didn't start making money until this year. I work for an employer who gives me a W2. We plan to file jointly.

With this in mind, what should we consider when managing tax payments? I typically get a refund, so would that be reduced by the LLC taxes? I've never done this before and I want to make sure I'm not missing anything!

emina

Hello and thank you for joining us today!

It sounds like your husband stared a single member LLC, which IRS treats as a disregarded entity, meaning it is a part of the owner's tax return. With this, your jointly filed tax return will include a Schedule C for this business. Shortly, if the business makes profit, there will be self employment taxes applied to this profit. If the business has losses, then there will be no additional taxes.
This is all assuming your husband didn't elect this LLC to be treated as a corporation, doesn't have partners, etc.

Here is the IRS link that provides detailed info on the topic: LINK