The Big Misconception
A lot of new business owners think forming an LLC automatically creates a separate tax return.
Not always.
An LLC is a legal structure, not a tax classification. A standard single-member LLC usually does not file its own separate federal business tax return.
Instead, the IRS treats the business as part of…
For a lot of freelancers, consultants, and LLC owners, success comes with a nasty surprise: self-employment tax.
You finally build a profitable business, hit a strong year, and then realize a huge chunk of your profit is getting eaten up by that extra 15.3% tax. It can feel like a success penalty.
That is why…