Do I File My Single-Member LLC as a Passthrough on My Personal Return?

Someone on Reddit formed a new single-member LLC for consulting/training: one consult so far (about $1,200), a few more expected per year, minimal expenses (legal fees, maybe mileage), a full-time job as a teacher, and they file jointly with their spouse (TurboTax) in Pennsylvania. They asked whether they file the LLC as a passthrough on their personal tax return and what the smartest approach is for taxes, including self-employment tax. Yes. As a single-member LLC with no S-Corp or other corporation election, you do file your business income as a passthrough on your personal return using Schedule C. You do not file a separate business tax return for the LLC; you will owe self-employment tax on the net profit from the consulting business.

Bottom line: Yes. As a single-member LLC with no election to be taxed as a corporation, you file as a passthrough on your personal tax return using Schedule C (Profit or Loss From Business). You do not file a separate business return. The LLC's income and expenses are reported on Schedule C; net profit passes through to your 1040 and is subject to income tax and self-employment tax. Keep records of income and expenses, and consider estimated tax payments or adjusted withholding if your job's withholding does not cover the extra tax on consulting income. Pennsylvania may have its own income or business tax rules.

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Question from Reddit

Formed a New Single Member LLC, do I file as a passthrough to my personal tax return?

A couple months ago I formed a LLC for what is basically just a consulting/training company. I've only done 1 consult so far this year but I have another one lined up in December.

To give you an idea of the $ value: The consults are typically 1-2 days (6-18 hours) and I charge about $100 an hour. I made $1200 off my first gig. Moving forward I expect to do only 3-4 of these consults a year. Which I think is a decent little side hustle for me... I'm just trying to figure out what the smartest thing to do would be for taxes. My understanding is that I'll have to pay self-employment taxes? I really don't have many business expenses/deductions, just some legal fees for setting up my LLC, and maybe milage but most of the companies I'm working with are local to me.

I have a full time job (as a teacher) and I normally file jointly with my spouse through turbo tax. I live in Pennsylvania if that helps with anything.

Thanks in advance!

Source: Reddit

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Analysis

The user has a single-member LLC for consulting/training with low volume (a few consults per year, about $1,200 so far) and minimal expenses. They are asking whether they file the LLC as a passthrough on their personal return and what the smartest approach is, including self-employment tax. For federal tax, a single-member LLC with no S-Corp or other election is a disregarded entity: income and expenses are passed through and reported on the owner's personal return on Schedule C.

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Answer

Yes. As a single-member LLC, you do file your business income as a passthrough on your personal tax return using Schedule C (Profit or Loss From Business). You do not file a separate business tax return for the LLC.

Why

• A single-member LLC with no election to be taxed as a corporation (e.g., S-Corp or C-Corp) is a disregarded entity for federal tax. The LLC's income and expenses are reported directly on your Form 1040, on Schedule C, as if the business were a sole proprietorship. So the LLC's profit (or loss) passes through to you and is included in your personal taxable income.
• You will also owe self-employment tax (Social Security and Medicare) on the net profit from the consulting business. That is calculated when you file (Schedule SE), and the net profit from Schedule C flows into that calculation. With a full-time job (teaching) and this side income, your total income will be higher, so withholding from your W-2 may not cover the extra tax on the consulting income; you may need to make estimated tax payments or adjust withholding to avoid underpayment penalties.

What to report

• Income: Report all consulting/training income (e.g., the $1,200 and any December gig) on Schedule C.
• Expenses: Deduct ordinary and necessary business expenses, e.g., legal fees for setting up the LLC, mileage (or actual vehicle expenses) for business travel, and any other valid deductions. Even if they're small, keep good records (receipts, mileage log) so you can support the deductions.
• Net profit: Income minus expenses = net profit; that goes on your 1040 and is subject to income tax and self-employment tax.

Practical tips

• Keep records of all income and expenses, even if minimal; you'll need them for Schedule C and in case of an audit.
• Estimated tax: If your combined tax (from your job + consulting) will be more than withholding + refundable credits, consider estimated tax payments (or increasing W-4 withholding) so you don't owe a big bill or underpayment penalty at tax time.
• TurboTax (and similar software) can handle Schedule C and Schedule SE when you file jointly; you'll add the LLC as a business and enter income and expenses there.
• Pennsylvania (and your locality) may have their own income or business tax rules; check the PA Department of Revenue or a local tax professional for state filing.
• Margen can help you model Schedule C income, expenses, and self-employment tax so you see the full picture and plan estimated payments.

Related: Can I Revoke S-Corp Election for My LLCs in 2026 and Go Back to Schedule C? · Converting from S-Corp Back to LLC · Do I File a 1065 and K-1 for a Multi-Member LLC? · Entity Classification Election Mistake: LLC Treated as C-Corp

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Applicable Sections

Federal / IRS

• Schedule C: Profit or Loss From Business (Sole Proprietorship); used to report income and expenses for a single-member LLC (disregarded entity) or sole proprietorship. (IRS Schedule C)
• Schedule SE: Self-Employment Tax; calculated on net profit from Schedule C (and other self-employment income). (IRS Schedule SE)
• Publication 334: Tax Guide for Small Business; explains reporting business income and expenses on your personal return. (IRS Publication 334)

State / Pennsylvania

• Pennsylvania may impose income tax and other business or local taxes on your consulting income. Check the PA Department of Revenue or a PA tax professional.

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Practical Notes

• Single-member LLC = disregarded entity; report on Schedule C on your personal return (passthrough); no separate business return.
• Self-employment tax applies to net profit from the LLC; it's calculated on Schedule SE when you file.
• Keep records of income and expenses (legal fees, mileage, etc.) for Schedule C and audits.
• Estimated tax: If withholding from your job isn't enough to cover tax on consulting income, make estimated payments or adjust W-4 to avoid underpayment penalties.
• Margen can help you model Schedule C and self-employment tax so you're ready at tax time.
• Pennsylvania: Confirm state (and local) filing and tax for your consulting income.

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Limitations

This answer does not cover Pennsylvania-specific income or business tax in detail, or S-Corp or other elections (which could change how you report and may not be worth it at 3 to 4 consults per year). For state compliance and whether an S-Corp election makes sense later, consult a tax professional. You can use Margen to model your side income and tax before and after filing.