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hi everybody,

Single person LLCs file the same as a sole proprietorship.on your Schedule C of your personal 1040.If you are going to owe more than $1000, yes you should have been making quarterly estimates. It is too late to do that now for 2006 and the 1st estimate for 2007 is due 4/15.

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Online Tax Preparation

Every year I threaten someone with an examination relating to single member LLC Schedule C
filing theory, a.k.a.: entity disregarded as separate from owner (Sec. 301.7701-3(b)(1)(ii)).

Investment LLC: Active versus Passive LLC income
Example 1
Single member LLC invests in:
...Real Estate Investment Trust mutual funds
..."Day trading" option sales
...NYSE stocks held for minimum of 180 days

Example 2
Developer forms SMLLC. Funds LLC with $100,000 cash. SMLLC loans $100,000 to XYZ Inc. for
development of a building for rent receiving a Promissory Note at 7% in return with an option to
purchase 10% of XYZ Inc. in 36 months. SMLLC performs no services nor conducts any sales.
Q: Is SMLLC a Schedule C "Small Business" Filer if the SMLLC restricts activities to
activities classified as nonbusiness investment?

Do we advise the person to file Schedule C (small "business"). Remember, a "business" excludes
certain passive investing activities. If the LLC is a Single Member LLC (SMLLC) is Schedule C
appropriate to express income from nonbusiness sources.

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Welcome,

If it's treated as a partnership it will file a Partnership Return on Form 1065 and any income will flow directly
to the partners' personal tax returns. If the LLC paid your personal tax bill it would not be a deductible business
expense and all partners would therefore share in the payment of your tax bill.

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"If it's treated as a partnership it will file a Partnership Return on Form 1065"

Nonsequitor Alert. Reread my question.
I reference A SINGLE Member LLC with NONBUSINESS INCOME from passive investment activities.

'1065 Filers are limited to MULTIMEMBER LLCs. Obviously Single Member LLCs are ineligible for partnership
classification.

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So what is the answer to the question above? I am curious.

same as a corporation LLC owner can be individually responsible for specific debts. If the loan is guarenteed personally by the LLC owner for the company, his personal assets can be sought to repay the debt.
I would be also looking forward for some more info about it from different users

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