A single owner LLC which is therefore a pass-through entity (and please correct me if I'm wrong) had less income than expenses. The expenses are real expenses and are yearly expenses, so we're not talking about a chair etc, but rather advertising, web hosting, etc.

How should that be filled out in a 1040 Form? As 0 income? As a negative? As a positive (for the income) and then separately the expenses?

1 Answer 1


Single owner LLCs are generally taxed as if they are sole proprieterships, which means that the income and expense reporting goes on Schedule C. If your business is in the red (more expenses than income), you'll have a business loss at the bottom of Schedule C, which generally reduces your taxable income on your Form 1040.

There are lots of details about all of this, so read the Schedule C instructions, talk to your accountant, and if you have a more detailed question about something, please ask a new question.

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