How to Complete a Schedule SE (1040) Form for a Limited Liability Company

A Schedule SE (1040) form is a self-employment tax form for a limited liability company. You must file this if your net total from self-employment is $400 a year or more. Based on this form, the Social Security Administration calculates your retirement benefits. Follow these steps to fill out a Schedule SE form.

Difficulty: Moderately Challenging

Instructions

Things You'll Need:

• Schedule SE (1040) form/booklet

Obtain a Schedule SE Form

1. Call the IRS to get the official Schedule SE (1040) form at (800) TAX-FORM. Since this could take up to 10 days, plan accordingly so you don't miss the filing deadline of April 15.

2. Visit the IRS Web site to print out the appropriate forms fast (see the Resources section below).

3. Find tax forms and other IRS-related resources at many county government offices, post offices and even at some large food-store chains.

Complete the Schedule SE Form

4. Review the directions on page 1 of the Schedule SE form to see what section you must fill out (either A: Short Schedule or B: Long Schedule).

5. Include all net earnings from self-employment as indicated in the instruction booklet obtained from the IRS. This type of income can come either from a farm or from a regular business such as a storage facility or retail shop.

6. Explore all options for different types of income you must report, such as interest received during the operation of business, interest on notes or accounts receivable or payments made to you as the executor of a corporation.

7. Fill out all areas of Schedule SE that pertain to your business. You might want to consult an accountant experienced in tax law to guide you through this process, especially if it's your first year doing taxes for a limited liability company. Visit the FindLaw Web site to explore possible outlets for help and information (see Resources below).

8. File your forms with the IRS either online with e-file or by mail. Plan on getting a response in approximately 3 weeks for electronic submissions and 6 weeks or more for mailed returns.

Tips & Warnings

• If you are a limited partner of an LLC, you must pay self-employment tax only if the LLC pays you for a service.
• Be careful what information you include on what form. For example, do not include net self-employment income from real estate rentals if you did not receive the earnings during business as a broker. Report this on Schedule E.