Home > Taxes > LLC and Job - Must I file two tax returns?
If I keep my job with my employer but run an LLC on the side, do I have to file two tax returns?
|
Listen to the audio
- To listen to this interview snippet, just click the play button above (twice if necessary).
|
In this audio snippet, you'll hear about:
- Yes. One for the LLC and one for personal
- LLC would include a K1 that goes on Schedule E of personal tax return
Audio Transcript
Travis:
If I keep my job with my employer, and I set up an LLC on the
side, do I have to file two tax returns, or does the LLC flow–through
onto my existing employers, the same tax return that I would file with
my W–2s?
Yosef:
I need you to repeat the question.
Travis:
If I keep my job with my employer, but I set up an LLC on the side, do I have to file two tax returns?
Yosef:
Yes. You have to file a tax return for your LLC and obviously, you still have to file a personal tax return regardless.
Travis:
So how does the flow–through income from the LLC affect the tax return from my employer? Does that make sense?
Yosef:
My presumption in your question is that somebody who is actually a W–2
wage earner, works for a company and is also doing some sort of LLC on
the side.
Travis:
Right, some side work.
Yosef:
That side work, if you're doing it under an LLC would require an LLC
tax return. The LLC would actually include a K–1 information return
that gets filed before the IRS and gets mailed to you as a shareholder,
as a partner. You include that information from the K–1 in your
Schedule E, which is filed with your tax return.
Travis:
With your personal taxes?
Yosef:
Yes.
Travis:
OK. Excellent.
Yosef:
Now there are certain line items on the K–1, which we discussed
earlier, which are called "separately stated items." They actually
include information that was placed elsewhere on your personal return.
But the most significant part of the K–1 shows up on the Schedule E.
|