Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Filing For Your Entity | Incite Tax

13 Mar 2025 · 1 min

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In this segment, the presenter explains how the choice of business entity determines the tax filing method for independent contractor income. A single‑member LLC files on Schedule C, a multi‑member LLC files as a partnership, and either structure can elect S‑corporation status, which can dramatically affect tax liability. The speaker stresses that the wrong entity choice can either save or cost thousands of dollars, and advises viewers to consult a tax professional to ensure the optimal entity is selected, framing the advice as a way to keep money in the contractor’s pocket rather than giving it to the IRS.

Chapters

Once you choose the right entity, then based on that, you're going to file your independent contractor activity the way that entity needs to be filed. If you're a single-member LLC, that gets filed on a Schedule C. If you have more than one member in your LLC, that gets filed as a partnership return. And if you make an election on either of those situations, you could technically need to file an S corporation. This situation alone can save you taxes or hurt you. Which is why we recommend talking to a professional about the type of income you have so that you make the right choice. We want to keep money in your pocket. We don't want to just willingly give it to the IRS. The right entity choice can save you thousands and thousands of dollars in taxes. Come on.