Single-Member LLC Taxes: Complete Guide

A single-member LLC is the most common business structure in the United States. The IRS treats it as a "disregarded entity" for tax purposes, meaning the LLC itself does not file a separate tax return. Instead, all income and expenses flow through to your personal return. Here is exactly how that works.

How Single-Member LLC Taxes Work

Your single-member LLC's income is reported on Schedule C (Profit or Loss from Business), which attaches to your personal Form 1040. You report all business income and deduct all business expenses, arriving at your net profit.

That net profit is subject to two types of tax:

1. Self-employment tax (Schedule SE): 15.3% of net profit (12.4% Social Security + 2.9% Medicare). You can deduct half of this on your 1040.
2. Income tax: Your LLC profit is added to your other income and taxed at your marginal rate.

Quarterly Estimated Taxes

Unlike W-2 employees who have taxes withheld from each paycheck, LLC owners must pay estimated taxes quarterly. The IRS expects payments by:

• April 15 — for income earned January–March
• June 15 — for income earned April–May
• September 15 — for income earned June–August
• January 15 (next year) — for income earned September–December

If you do not pay estimated taxes and owe more than $1,000 at filing time, you will face an underpayment penalty. Use Form 1040-ES to calculate and submit your quarterly payments.

Common Business Deductions

• Home office deduction: If you use part of your home exclusively and regularly for business, you can deduct a portion of rent, utilities, and insurance. The simplified method allows $5/sq ft up to 300 sq ft ($1,500 max).
• Vehicle expenses: Business miles driven can be deducted at the IRS standard mileage rate ($0.70/mile in 2026).
• Equipment and software: Computers, software subscriptions, tools — all deductible.
• Professional services: Accounting, legal, marketing, and consulting fees.
• Health insurance premiums: Self-employed individuals can deduct health insurance premiums for themselves and their family.
• Retirement contributions: SEP IRA contributions (up to 25% of net self-employment income).

Record-Keeping Requirements

The IRS expects you to maintain adequate records for all business income and expenses. This means:

• A dedicated business bank account (not legally required for single-member LLCs, but strongly recommended)
• Receipts for all business expenses
• Mileage logs if you deduct vehicle expenses
• Records of all income received

State Taxes

In addition to federal taxes, most states tax LLC income. The rate and method vary by state. States with no income tax (Texas, Florida, Wyoming, etc.) are the simplest — but remember that some of those states have other taxes (Texas franchise tax, Washington B&O tax).

When to Get a CPA

If your LLC earns more than $50,000 in profit, hiring a CPA is usually worth the investment. They can identify deductions you might miss, handle your quarterly estimates, and advise on whether S-Corp election makes sense.

Use our free LLC calculator to estimate your tax burden based on your expected income and state.