Video instructions and help with filling out and completing Are Form 1065 Schedule M 3 Dont

Instructions and Help about Are Form 1065 Schedule M 3 Dont

I hey they're party people Jim Hart back out to here today again from Hawthorne law with another amazing crazy video today and today I want to answer another user question today's question is can you do a video on how to file federal taxes as sync as a single member LLC so make sure you stay tuned to the end of the video today because I have a special surprise and store for you something I'm doing that I have not done for a while so if you've been listening to this in October of 2018 I'm going to talk about the special surprise here at the end is a really important question it's a simple question but it's a hard question at the same time if you're a single member LLC the way you're gonna file your taxes is you're going to include all your business income and losses on your Schedule C which gets attached to your 1040 so it's actually fairly straightforward and easy the hard part about this is you need to make sure that during the course of the year you're keeping track of all your business income and expenses so that you can include that information on your Schedule C so you're going to know how much money you made you're going to need to know how much you paid in business expenses and these expenses could be anything from rent so this office I'm in right here I paid rent for this office that's a business expense it could be for software you purchased for the business it could be for you know the computer you purchased for the business I know most people use their computers for business and personal you're gonna need to talk to an accountant about how to figure out how much you can devote for personal and how much you can deduct for business but that would be a business expense if you went out and met with people potential clients and referral sources and people like that those are all expenses that you're going to be able to deduct as part of your business income so this is so right now as we're nearing October 15th for 2018 if you filed an extension you're going to be doing your taxes for 2017 next year the tax law and the whole system is going to change and so there's actually some significant benefits to forming an LLC and/or you don't even need to form an LLC you could be a sole proprietor tecnique technically so there's a lot of benefits to being taxed as a business and one of which is you can deduct I believe it's 20 percent of your profit from your business from on your personal tax return that's a huge benefit if you think about it so if you netted $100,000 from your business income and that would ordinarily be taxed it I think it's around 15% I know you I know you accountants out there gonna watch this video and you're gonna correct me and tell me I'm a lawyer that shouldn't be doing tax stuff and and maybe you're right but I believe that's correct so now instead of paying $15,000 you're gonna pay 15% on $80,000 of income because you can deduct that 20 20 percent or $20,000 so that does a huge benefit to a lot of people so there you have it in terms of how do you file federal taxes as a single member LLC it's really just as easy as is filling out that Schedule C and including it with your tax return you're gonna pay self-employment taxes on all that money that you earn from the business but you still get to deduct quite a bit so that you can save yourself a lot so this is different than if you're an employee when you're an employee you basically have to declare all your wages you don't get to deduct any expenses off your wages as a business owner you get to net out the expenses from the revenue of the business and you only get taxed on the profit that your business earns so that's a that's a huge benefit that's why a lot of people like to become self-employed and like to own your own businesses or even become an independent contractor because you can actually pay a lot less in taxes by doing it that way so there you have it that's how you file your taxes as a single member LLC if you have any questions please feel free to leave a comment down below also if you like this video please click the little thumbs up button give me a like we love the likes around here and also don't forget to subscribe so you can get access to all my videos when they come out I was a little irregular for a while but we're starting to get back into the swing of things and I'm posting 1 to 2 videos a week now so make sure you click the little bell and you can get notified when videos hit the channel right away okay also special surprise I'm saying it I'm putting it out there which means I have to do it and this is something that I think is gonna be a big benefit to a lot of you I've decided to do a special online training and basically the training is going to talk about all the things that you need to know all the roadblocks all the potential hurdles everything you need to know when you're starting your business from a legal standpoint the things that you need to be aware of so it's a big overview not teaching people business law you don't need to know business law but you do need to know the things that you should and shouldn't be doing as you're starting your business and that's what I'm gonna