Contact UsMy husband has a small LLC trucking company. We are confused as to which forms to file. We are confused about all the different forms. 1040 with Schedule C, 1040SS, S Corp election, etc... His is a small business with less than $70,000 income and about $10,000 expenses for this year. Is there any benefit to filing S corp election, and if so, how exactly does that work? What about 1040 SS? Any advice would be greatly appreciated. Thank you!
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Tax Professional Answers
Devon McCarthy FCCA, EA
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532 weeks ago
An LLC with a single member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes), unless it elects to be treated as a corporation.
If an election to be treated as a corporation is not made, the activities of the LLC will generally be reported on the owners return. For individuals that would be form 1040 with either schedule C, Schedule E, or Schedule F, depending on the income source.
Choosing to be taxed as an S Corp could result in tax savings. An election has to be made using Form 2553.