What is the definition of a member’s distributive share of an LLC?

Each member’s distributive share is his or her respective interest in the LLC’s profits or losses for a given year (whether or not…

What is an LLC?

A Limited Liability Company.

A Limited Liability Company (LLC) is a type of business organization that is not directly subject to income tax. Instead, the income of the LLC passes through to its owners and is taxed to them at the tax rates applicable to…

I have a resource that I utilize for both personal use and resource sharing. How do I allocate the separate uses so that I pay the appropriate taxes for each use?

These guidelines will focus on the two…

How should I track revenue and expenses of my business?

It is important to use some type of tool to track all revenue and expenses of the LLC.

How do I create an LLC?

Creating an LLC is fairly simple, but the specific procedures vary from state to state.

Some of the basic information you will usually need is:

• A name for the LLC.

Am I subject to the Self-Employment Tax?

A self employed individual (even in a part-time business) is generally required to file an annual return and pay estimated tax quarterly by filing Schedule SE…

I am the sole owner of my LLC. How do I report my income and losses?

As the sole owner of an LLC, you will report all of the profits (or loss) from your LLC on Schedule C and file it with your 1040 Tax Return.

Why would I create an LLC?

To keep it simple.

An LLC is a useful type of business organization for a company that wants the ease of filing, low cost, and flow-through tax structure of a sole proprietorship and the limited liability associated with a traditional…

I am selling goods online. Am I required to charge sales taxes?

The answer to this question will generally depend on the states in which your business has a physical presence.

What tax documents will I need to fill out for my LLC?

Because an LLC is a pass-through tax entity, meaning there are is no taxation of the LLC itself, you will report your profits from the LLC on…

I haven’t sold anything for money but have bartered goods using an online exchange. Should I report that?

Bartering is an exchange of property or services and the fair market value of the property or…

I own my LLC with a partner (or partners). Are there any documents that govern our rights between one another?

Although many states do not require an LLC to have an operating agreement, it’s advised that…

I run a business through an online marketplace. Are there any steps I can take to protect myself and my company?

One step you can take is to create a formal legal entity, such as an LLC.

I own my LLC along with one (or more) other members. How should we apportion the amount of profit (or losses) for the purpose of reporting taxes?

Multi-owner LLCs (like single-owner LLCs) are taxed only…