I am the sole owner of an LLC. I have closed out the books for my first year of business. I have not filed my taxes yet. I want to make sure I am doing things the right way. I am being asked to produce initial tax documents to support my reported earnings. Do I need to report my earnings in a W2 or a 1099?

ANSWER

The BIDaWIZ Team's Answer:

Is the LLC taxed as a sole proprietorship or did you elect to be taxed as a C Corporation? If it's a sole proprietorship, neither a W-2 or 1099 form will be issued to you. Rather, the business income will be reported on Schedule C of your form 1040 and you'll also pay self employment taxes on the income via Schedule SE. This is referenced in IRS Publication 334 and IRC Section 7701(a)(31).