I think you mostly have the right idea. Look at where the fuel and seats and baggage loads are located. You want to be within the CG range at min and max loading. Your DAR will check this. From what I have seen, not done it myself, you will need to calculate an Empty Weight CG, Most Aft Weight and CG (loaded with max load in baggage and seats etc), Most Forward Weight and CG, Flight Test Weight and CG (with your real loading for flight testing). I believe all need to be within the CG range and less than the max gross weight. The idea is to show you can load the fuel and seats and baggage in ways that work. For example, if you have such a heavy engine that the CG is forward of the limit with just a light pilot in the left seat, you may need to add ballast to the rear so the Most Forward CG comes into the proper range. You may also find that the aircraft will fly better if you keep it in a tighter range than the design limits. Some just like to fly better with the CG in the center to slightly aft in the CG range - less trim needed, so less drag from the trim tab etc. For each flight, it is necessary to know that at both TO and LDG (with full fuel and at min fuel) you will be within the limits at all times.

Others with experience doing this, or perhaps a DAR, can correct anything I get wrong; but that is how I understand this is supposed to be done. You probably ought to call your DAR to confirm what he will expect to see.

FYI: I am aware of a guy who recorded his W/B with his DAR and the FAA at 1320, for an AVID Mk IV (Heavy Hauler wing) with a kit design weight limit of 1150. 170 pounds added to the max load. No issues with the DAR or the FAA, and still LSA legal. Taking an 1150 to 1320 may be a bit excessive, but I think it is fairly common to take the 1050 and 1150 to 1200 or 1250, especially when they are planning to add floats. Taking a Kitfox 1200 to 1320 may also be common now? I don't know. The thought was that it gives you some additional utility, by reducing your margin on the + and - g-forces. Someone on the forum may want to comment on that too.