Nevada LLC Taxation Part 2

We previously discussed the 4 different ways your Nevada LLC can be taxed. The single entity requires a little more in depth discussion. The IRS considers a single entity LLC to be either a single person or another entity. For the purposes of taxes the IRS considers a husband and wife as a single entity. If you are a single entity they want you to file the LLC return on your personal return. This can be a positive or negative feature. In the positive it will cost you less with your accountant. A very big negative could be that you will now pay self employment taxes on everything you made. That could prove very costly. Make sure prior to forming your Nevada LLC that you have discussed everything with your accountant to ensure that you are structuring yourself so as to minimize your taxes.