Does single member LLC get put on Sch C?

[banjodude]

Got my first LLC client, single owner in PA. Does it just go on Sch C, and how do you indicate it's an LLC? Otherwise, it just appears as a sole proprietor Sch C. 

[IRonMaN]

Yes, it goes on a schedule C unless they made an election to be treated differently.  There is nothing extra to do as far as indicating it is an LLC on the schedule C.

[abctax55]

What Jeff said...

SOME states (like California) require an additional form AND an LLC tax/possibly a fee also.  

So find out if PA does (or wait for a PA preparer to chime in.

[banjodude]

Thanks. Let's hope it's that easy. 🙂

Kevin

[qbteachmt]

A few basics you need to know, because you asked a very basic question and that's a bit concerning, so heads Up:

LLC is a State construct, so make sure you know what applies to the State(s) being referenced.

Federally, Single member LLC (SMLLC) means it is not a partnership, by definition. That makes it a Sole Proprietorship, so that makes it Schedule C.

A multi-member partnership LLC is filed on form 1065.

In all of these above structures, there is no payroll for these people.

An LLC is a legal entity and can apply for Corporate treatment. It might be S corp, but does not need to be.

Corporate status means required payroll for the working members/partners/shareholders. But now there is no Owner, so no Owner draw.

You have a lot of due diligence to do for these considerations, as your tax payer won't know or has it confused when they present it to you. And get a reference for when they needed to get a new EIN for when they tell you, "We changed last year."

If you don't get this part right from the beginning, everything flowing out of here is going to be headed down the wrong route.

[banjodude]

Thanks. They did indicate is a 1-person LLC with no payroll, so that much I know. Simply selling medical supplies. Not sure of the purpose of the LLC since it’s treated the same as a sole proprietor.  Why an LLC? And if it gets complicated I’ll simply tell them to look elsewhere for a preparer who can help them. 

[George4Tacks]

LIMITED LIABILITY COMPANY. In my humble opinion spend the money on liability insurance rather then the complexity of forming the LLC. Ask your client who suggested this - The barber - The barkeep - The bus driver - He heard an ad on the radio.

This is outside your wheelhouse since they already did it, but prepare yourself for when someone asks you about it BEFORE they do it. 

[BobKamman]

What @George4Tacks said.  If anyone is going to sue the LLC, they're going to sue the single member also, and let the liability be sorted out by the insurance companies.  

But did you know that the United State of America is a Texas corporation?  Yes, Elon Musk registered United States of America Inc. with the Texas Secretary of State in October 2024.  Because, sometimes doing business as a corporation impresses people, even if the name itself is losing respect worldwide.  If you want something fancier than a dba, might as well consider a Lemmings Leaping Cliffs LLC.  

[qbteachmt]

"Why an LLC?"

There are some professions where it's standard to form an entity, especially in the medical field. Some States require doctors to be Professional Corporation as PC or PLLC. Florida uses PL. A Professional Limited Liability Company (PLLC) is a specific business entity designed for licensed professionals—such as attorneys, accountants, doctors, and engineers—to operate while providing liability protection for personal assets.

Some vendors or service providers will not work with Sole Proprietorships.

Some people form an LLC in anticipation of holding property, getting partners, wanting some benefit plan which requires it. Your State likely has business registration requirements, but not all States have the same requirements. My State is looking to "lower the bar" on being in business as a professional. "The purpose of the Task Force is to provide the Governor with recommendations and strategies...to reform the professional occupational licensing system for the purposes of identifying and removing barriers faced by licensees that are not necessary to protect the public and improving access to and availability of professional services..."

Most of this is Legal, not tax related.