What is the best way to file taxes for my single member llc

by Chief3000
(Louisiana)

I am a single member llc and have been doing some research on how to file my taxes. Although I 've been receiving plenty of good information, I haven't found that one good answer. Here's my situation. Again I am the owner of a single member LLC. I have not made any profit as of 2008 and don't plan on doing so for 2009 for I am still in the initial standup (crawl) stage. The only thing that I have is business startup costs which round up to about $2500. What is your suggestion for a new business person?

Answer

You definitely need to file a return. If you don't, you are throwing away $2,500 in deductions, which can be over $1,000 depending on your tax bracket.

As a single member LLC, you can report your LLC's income and expenses on your Schedule C (it's part of your 1040).

Since your income is 0, and expenses $2,500, you will have a negative profit (loss), which transfers over to your 1040 as a deduction.