My husband has started doing some contract work training Emergency Medical Service Providers...he is licensed and works full time as a firefighter. The companies are giving him 1099s, and as LLCs themselves they are not wanting to put him on payroll. I know we need to do something in order to validate the extra income and an LLC is the way we were told to go. It will be a single LLC, since we will not benefit from me being a member. Is an LLC the right thing? After reading Limited Liability Companies for Dummies, I am a little nervous, but I don't want to start recruiting members. This is great money, more than our salaries put together, but I want to do it correctly! Thank you!
When your LLC has only one member, it’s called a single-member LLC. Single-member LLCs are treated as disregarded entities by the IRS as discussed in The Skinny on Single Member LLCs. When LLCs came into existence, they were intended to be treated as partnerships. Just because you have a single member LLC this does not mean you don’t have options. You can still make a tax election, you just can’t elect partnership taxation. If you want to be subject to corporate taxation, simply file form 8832, Entity classification election (within 75 days of your formation date. From there, you can either pay taxes as a corporation or elect S-corporation taxation, by filing form 253 with the IRS.
To keep the liability protection in your single member LLC remember the following:
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What is your first step? Simply choose which of the following two options applies to your business:ALREADY INCORPORATED in the state of Nevada? 2015/08/15 - Your annual fees increased from $325 to $650, and that’s not including the Commerce Tax if it applies to your business! Further, you will now be required to file your tax return with the NV Department of Taxation with June 30th as the fiscal year, not the calendar year! Review these changes with your tax advisor immediately! If you choose to re-domicile your corporation in another state, MyLLC will file the re-domestication paperwork for you!
MyLLC is committed to assisting you in this process but you must contact us today!Call us toll free at 888.88.MYLLC or fill out the contact form so one of our experts can help you.