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[quote=Anonymous]You and your husband would continue to file a 1040.  Your income will go on a schedule C which is just another form that will be a part of your filing.  As a single member LLC your taxes “pass thru” to you as an individual.  The LLC does not pay the taxes.

Establishing yourself as a single member LLC creates a buffer between your business and your family assets.  If you were to be sued, the only assets at risk are whatever belongs to the business.  It’s cheap and easy to do.

You also might consider a Solo401k for yourself.  You can do either traditional or Roth.  You may find you are in a position to contribute the max and 25% of your profits depending on your family situation.

As for taxes, you will need to file quarterly.  It’s not hard but you do not want to be in a position with the IRS where you did not pay quarterly and then you owe a lot of money.  Same for state taxes.

The home deduction isn’t as advantageous as it used to be.  Business expenses like a professional membership or your costs for supplies are deducted from your profit.  That’s what is taxable.  There are a bunch of other expenses that are available to be deducted.  Also, since you are the company, you pay both the employee and employer sides of SS and Medicare costs which gets called the self employment tax.

A CPA or tax accountant can guide you through the taxation side of an LLC and would probably help you set it up for a fee.[/quote]

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