The most common tax season complaint for anyone who owns a small business or has a side gig is forgetting about estimated taxes. Tax season rolls around, and you realize you’re behind on your payments. If this sounds like you, you’re in the right place. We’ll break down things like how to file quarterly taxes for an LLC, how do tax write-offs work for an LLC, using an LLC quarterly taxes calculator and the LLC estimated tax form.

Table of contents

Key Takeaways:...Read more

Do I pay quarterly taxes if I just started my business?...Read more

How often should an LLC file taxes?...Read more

Do LLCs file quarterly taxes?...Read more

How do you calculate LLC quarterly taxes?...Read more

The LLC estimated tax form: Form 1040-ES...Read more

What happens if you miss a quarterly estimated tax payment?...Read more

Do I file my LLC and personal taxes together?...Read more

How do tax write-offs work for an LLC?...Read more

Key Takeaways:

LLC quarterly taxes have to be paid throughout the year if you owe over $1,000.
An LLC estimated tax calculator is the easiest way to find what you owe.
Filing quarterly taxes for an LLC can vary based on the type of business entity the LLC is taxed as.

Do I pay quarterly taxes if I just started my business?

If you started your business this year, you have to pay estimated taxes by the quarterly tax dates for 2024 if you expect to owe $1,000 or more. This is required by the IRS to ensure that taxes are paid throughout the year on income that isn’t subject to withholding. Paying quarterly estimated taxes on time helps you avoid penalties that the IRS imposes for underpaying. A small business quarterly tax calculator is an easy tool that can help you with this. If you're wondering about the estimated tax rate for the self-employed, there isn't one. Self-employed individuals who operate as sole proprietors, partnerships or LLCs will have to pay SE tax at 15.3% of their net income. However, estimated taxes are paid on your total tax liability, which includes federal income taxes.

How often should an LLC file taxes?

Unlike estimated tax payments in 2024 which should be made throughout the year, an LLC only has to file taxes once. The LLC tax filing deadline varies based on how your business chooses to file. The IRS regards LLCs as a disregarded entity so LLC members have to decide what kind of business entity they want to file as. If you're part of a single-member LLC, you have to file as a sole proprietorship. In this case, tax day will be on April 15. Multi-member LLCs can file as partnerships, S Corps or C Corps. In this case, tax day is on March 15. When you're filing quarterly taxes as an LLC, you only have to include paperwork for your estimated tax payments if you're paying by mail.

Infographic entitled LLC Tax Day showing the deadlines to use a small business estimated tax calculator to find tax payments.

Do LLCs file quarterly taxes?

LLCs often need to file quarterly taxes. If your LLC has income that isn't subject to withholding, like profits from business activities, you'll likely need to handle LLC quarterly taxes. This means making estimated tax payments every quarter to stay on top of your tax obligations and avoid penalties. Here's how to file quarterly taxes for an LLC: you'll estimate your income and expenses for the year and divide the total tax owed into four payments. Taxpayers who are part of an LLC can use an estimated small business tax calculator to find their quarterly tax liability.

How do you calculate LLC quarterly taxes?

The process of calculating and filing quarterly taxes for an LLC is pretty straightforward. Here's what you need to do:

Estimate your income: Start by estimating your total income for the year using a small business quarterly tax calculator. This should include all the money your LLC expects to earn.
Estimate your write-offs: Next, figure out your deductible expenses, like internet and phone costs, legal fees and advertising expenses. Subtract these from your income to get your taxable income.
Calculate estimated tax liability: As there is no estimated tax rate for self-employed individuals, just calculate your total tax owed for the year based on your taxable income.
Divide by four: Split the total tax into four equal payments. These are your quarterly tax payments for 2024.
Do the math on Form 1040-ES: The IRS provides Form 1040-ES, which includes a worksheet to help you with these calculations. This is the main LLC quarterly tax form you'll need.
Pay on time: Make your payments by the tax deadlines. For 2024, they fall on April 15, June 17, September 16 and January 15 of the following year. If you're unsure how to file quarterly taxes for your LLC or need help doing the calculations, a tax pro can guide you through the process.

If you think your income may vary throughout the year, you can use the annualized income installment method to pay taxes on the income you earned every quarter.

The LLC estimated tax form: Form 1040-ES

Form 1040-ES is the LLC estimated tax form you need to calculate and pay your quarterly estimated taxes. It's an essential form for LLC owners to ensure they meet their tax obligations throughout the year. This form includes an LLC estimated tax calculator, which helps you estimate your annual income, deductions and the total tax you have to pay. For those of you in California, there's also a CA LLC estimated tax form specifically for state tax calculations, called Form FTB 3536. Using Form 1040-ES along with this CA LLC estimated tax form helps you stay compliant with both federal and state tax requirements.

What happens if you miss a quarterly estimated tax payment?

If you forget about your small business quarterly taxes, there can be consequences. The IRS typically applies penalties and interest on any unpaid amounts, which can accrue over time. To minimize these charges, you have to make the payment as soon as possible. Additionally, there’s a risk of facing an underpayment penalty if you haven’t paid enough throughout the year. This penalty is calculated based on the amount owed and how late the payment is made. If you do miss a payment, it’s important to pay quickly. You have the option to pay the missed amount when you file your taxes or adjust your next quarterly payment to make up for it. Using a small business estimated tax payments calculator can help you stay organized and ensure you’re making accurate payments each quarter. It’s also essential to file your LLC quarterly tax form on time to avoid penalties and keep your tax obligations in order. If managing LLC quarterly taxes feels overwhelming, consider consulting a CPA. They can provide guidance tailored to your business’s needs and help you navigate the complexities of tax payments effectively.

Do I file my LLC and personal taxes together?

You don't always have to file LLC and personal taxes together. As an LLC owner, your business's income and expenses are typically reported on your personal returns if you're taxed as a pass-through entity (sole proprietors, partnerships, S Corps). In these cases, you can file all your small business quarterly taxes and personal taxes together. If you're taxed as a C Corp, you have to file your LLC and personal taxes separately as you'll be taxed both on the corporate and individual level. Using tools like the LLC estimated tax calculator can help you accurately find what you owe in taxes.

Infographic entitled Filing LLC and Personal Taxes showing when to file together or separately when filing quarterly taxes for an LLC.

How do tax write-offs work for an LLC?

Tax write-offs for an LLC enable you to deduct any ordinary and necessary business expenses from your taxable income. Business deductions can vary based on what your work is but common costs include office space rent, equipment, utilities, startup costs and CPA fees. Using tools like an LLC estimated tax calculator helps you accurately calculate these deductions. It's crucial to maintain meticulous records of these expenses throughout the year. This documentation is essential during tax filing. While you don't have to file an LLC quarterly tax form, the IRS may ask to see proof of your expense calculations if you ever get audited.

Infographic entitled LLC Tax Deductions showing expenses that can lower small business quarterly taxes.

FlyFin’s Ultimate Plan is specifically designed to cater to businesses wondering how do tax write-offs work for an LLC and looking for help filing taxes. Expert CPAs provide unlimited tax support on the app, AI finds all your business deductions and an in-built small business quarterly tax calculator accurately calculates your owed tax liability.

LLC tax loopholes

LLCs can use tax loopholes to lower taxable income and their tax bill. FlyFin offer expert CPA support to handle business taxes on the app.

A Guide To Paying LLC Quarterly Taxes