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As a sole proprietor, all of the net income from your business must be treated as personal income. This means that every dollar you earn is subject to employment taxes and income taxes. Nevada State Corporate Network NSCN is a Full-Service Incorporating, Consulting, Business and Asset Management firm providing creative turn-key solutions for today's complex Tax, Privacy and Asset Protection issues. Nevada State Corporate Network can help with estate planning services, pre paid legal services, tax strategies, tax reduction strategies and we can help you incorporate in Nevada. At the end of each year the LLC files a return with the IRS showing how much the profits or losses are and who the members are that get the credit for the losses or owe the taxes for the profits. The LLC does not pay taxes. Protect your assets with asset protection setup by Nevada State Corporate Network. They'll help you form a living trust, a family limited partnership or a land trust. 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