If you run a single-member LLC (Limited Liability Company), the IRS makes no distinction between you and the LLC when it comes to taxes. You may hear this kind of LLC referred to as a “disregarded entity.” The LLC’s activities, whether it made a profit or experienced loss for the tax year, should be reflected on your personal tax return.
In most cases, you’ll report your LLC’s profits or loss on the Schedule C, but there are a few minor exceptions. For example, if you need to report single-member LLC income or loss from rental real estate, royalties, partnerships, estates, or trusts, you’ll use a Schedule E, Supplemental Income and Loss. If you need to report an LLC’s farm income and expenses, use Schedule F, Profit or Loss From Farming.4