. While putting everything in I noticed our refund with just our personal information (we had full time jobs at the beginning of 2016 so we did pay some taxes)is a pretty good amount and once I added the LLCs the refund amount dropped drastically. We are taking a loss of about 9,000 from both companies so I wanted to file our personal taxes seperate from our LLCs which I believe I can do and I understand the LLC would be treated as a corporation and taxed as such but how does the fact that there wasn't any income just a loss of 9,000 affect filing the LLCs seperate? =====>>>>>> assume that it is treated as an S corp; S-corps, like partnerships, are pass-through entities. That is, there is no federal income tax levied at the corporate level. Instead, an S-corp?s profit is allocated to its shareholder(s) and taxed at the shareholder level. As with a partnership, Schedules K and K-1 are used to show how the business?s different types of income and deductions are allocated among the owners.The default federal tax status for a SMLLC is disregarded entity. However, the owner of an SMLLC can elect to have the business taxed as either a traditional C corp or as an S corp. An S corp is a special type of small, closely-held corp. This article briefly covers SMLLCs taxed as S corps An S corp, like a typical LLC or sole proprietorship (but unlike a traditional corporation), is subject to pass-through taxation. In other words, the responsibility for paying income tax passes through the business to you personally.So aslongas the LLCs are treated as an S corp and taxed as such, so even if you file separate LLC returns,
Will this be in our best interest?=========>>On your 1040 you need to report your W2 income on line 7 while an S corp, in addition to reporting compensation and dividends, you also report your share of corporate profits/losses on Schedule E of Form 1040. The amount reported on Schedule E is taken from Sch K-1 issued to you by the S corp and is reported on 1040 line 17.