Agency Payments: If I pay an agency 20% of my business earnings, how should I organize this expense for tax purposes? How can I properly write this off on my business taxes?Self-Employment and Payroll: As the owner of my LLC, if I pay myself through the business, do I need to complete a W-2 or 1099 for myself? I'm technically an employee of my own LLC, and I want to ensure I'm following the correct procedures.

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mbrowngold

Question

Taxes

Forum|Forum|1 year ago
May 22, 2024
1 reply
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Agency Payments: If I pay an agency 20% of my business earnings, how should I organize this expense for tax purposes? How can I properly write this off on my business taxes?
Self-Employment and Payroll: As the owner of my LLC, if I pay myself through the business, do I need to complete a W-2 or 1099 for myself? I'm technically an employee of my own LLC, and I want to ensure I'm following the correct procedures.

Ask the Experts - Biz Tax - May 2024

rjs

Employee

1. Enter the payments to the agency under "commissions and fees."

2. Are you the only member (owner) of your LLC? If so, you are not an employee of the LLC and you do not pay yourself. A single-member LLC is disregarded for tax purposes. You and the LLC are one and the same. The LLC's income is your personal income. You report your business income and expenses as self-employment income on Schedule C, the same as if you did not have the LLC.