Originally Posted by D_Victoria_Virtual_Assistance
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I have a question - what are the differences between a Single Member LLC and a Sole Proprietor (taxes, filing, etc)? I contacted my state and an attorney...but I am still a bit confused.
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The short version is... nothing! For tax purposes, the IRS considers income received by both sole-props and llcs to be 'pass-through' income. In other words, the income is considered to be yours, not your companies. Most states follow IRS regs, as well.
So... whether a sole-prop or a llc, treat your income the same way. Make your required tax deposits to the feds (April 15, July 15, Sept 15, Jan 15) - I recommend 18% of net income for each period - and check with the state for their LLC required tax deposits (if any - many states don't have a requirement).
I will be giving a 'Basic Bookkeeping' chat tonight in the VAF chatroom (
click here to get info) and will be happy to answer any additional questions you may have at that time.
