This article will be of a great interest to you if you do business as a sole proprietor or single-member LLC.
If you do not know about how single-member LLCs work, these types of businesses frequently do business from home and employ friends and family. IRS has special rules that apply to single-member LLCs, which if properly followed can result in huge tax savings.
Let us first understand how IRS taxes these single-member LLCs.
The IRS taxes your single member LLC business as a sole proprietorship, which requires a Schedule C. The Schedule C is prepared and attached to your Form 1040 Individual Income Tax Return.