Cleaning business used to be a sole proprietor, then created LLC in March 2020... how to file?

[giogis245]

She says that she was told that she can keep filing a 1040 and include the income in Schedule C, is that correct?  Or does she have to file a company return that flows to her personal?  She does not pay herself a salary.  

[Dave T]

If she is a single member LLC it is considered a disregarded entity and she will continue to report income and expense on Schedule C.

[Pacun]

She has a choice but she already told you which one she wants (schedule C).

[gfizer]

15 hours ago, Pacun said:

She has a choice but she already told you which one she wants (schedule C).

She only has a choice if she filed the election to be treated as an s-corporation.  If she hasn't made the election then she would file on schedule C.  Not sure about IL but KY does require an additional form (and fee - LLET Tax) to filed for the LLC.

[Catherine]

Make sure she hasn't filed to be treated as an S-Corporation.  If not, then she can use Sch C for the full year.  Else, Sch C short year until she got the LLC, and a short year 1120-S for the corporate portion.  Watch for state forms and annual reports specific to LLCs, too.