Do i have to file personal income from paychecks made from own LLC?

by yan
(los angeles)

I have an LLC, if I make myself a pay check every month, do i have to file personal income? meaning that I'd have to file taxes for the LLC, and personal ones separately?

Answer

If you have chosen to treat your LLC as having "pass-through" taxation (that is, taxed like a partnership), you only pay taxes once.

However, you do file what's called an informational tax return for your LLC (Form 1065). The LLC then issues each member a form K-1, which tells the member how much income they need to report on their personal tax return.

If you run a single member LLC, your LLC can get disregarded entity status, which means you don't even file a form 1065--you simply include your LLC's revenues and expenses on Schedule C of your personal 1040. The same goes if the only members of the LLC are husband and wife filing a joint tax return.