I run a Single-Member LLC, and my friend operates a Multi-Member LLC. We are trying to figure out what VAT, taxes, and annual charges apply to our businesses. Are the requirements different, and what should we expect to pay annually?
VAT and annual charges depend on factors like business activity, revenue, and state regulations.
Take a look at the following:
VAT (If Applicable)
U.S.: Most states do not have VAT, but businesses may need to collect Sales Tax if selling taxable goods or services.
Annual Charges for LLCs
State LLC Fees: Varies by state (e.g., California has an $800 franchise tax).
Registered Agent Fees: If using a service, expect $50–$300 annually.
Annual Report Fees: Required in many states ($50–$200 per year).
Federal & State Taxes:
Single-Member LLC: Considered a disregarded entity by default; profits are reported on the owner’s personal tax return.
Multi-Member LLC: Taxed as a partnership by default unless electing S-Corp or C-Corp status.
Self-Employment Tax (If Applicable)
Single-Member LLC owners must pay self-employment tax (15.3%) on net profits.
Multi-Member LLCs distribute profits, and members report income accordingly.
💡 Tip: Consult a tax professional to determine state-specific fees and VAT obligations based on your business location and operations.
Consult with a legal expert for tailored advice.
