As of January 1, 2009 single member LLC's that are disregarded for income tax purposes are required to report and pay employment taxes under the FEIN and name of the LLC.
This means that from here on out your LLC will deposit employment tax, file employment tax returns, employee W-2's, and all employment related paperwork using the true, legal name of the LLC and the original FEIN* issued to the LLC by the IRS.
WHAT IS A SINGLE MEMBER LLC
A single member LLC is typically formed to provide the legal liability protection for the owner that a sole-proprietorship does not offer. We also use single member LLC's to hold rental real estate. TWC advises one LLC per property. That way you don't risk exposure of every property because some tenant fell off the roof and impaled himself on an iron fencepost in a hideous and grotesque manner that requires a jury to award a multi-billion dollar punitive judgment.
HOW DOES IT WORK?
To make it simple, except it really sort of doesn't, the law allows the owner to report all the income and expenses connected to the business or rental property on her own individual tax return. Business stuff goes on Schedule C. Rental stuff goes on Schedule E. LLC does not file a return nor is it taxed except in Californicate (big surprise there) and a handful of other states.
WHAT DO YOU MEAN BY STUFF?
The term stuff is a technical term used widely in tax law journals and the tax code.
WHAT IS AN FEIN?
*Federal Employment Identification Number
Tedious particulars here.
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