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Angie
Angie, Tax Preparer
Category: Tax
Satisfied Customers: 225
Experience:  Bookkeeping, Profit and Loss, Balance SheetsAll types of US Taxes, Tennessee taxes, Personal, business, payroll, sales tax etc.
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My LLC was formed in August 2015. We are a partnership. If

Customer Question

My LLC was formed in August 2015. We are a partnership. If we do not make a profit for that quarter, do we still need to file a 1040ES? Does the IRS provide the dates for each tax quarter and the filing dates for that quarter? My LLC was formed August
2015. I read somewhere that we do not have to file quarterly taxes in 2015. Is that true?
Submitted: 1 year ago.
Category: Tax
Expert:  Angie replied 1 year ago.

This is true. You do not need to pay estimated taxes. If you will be filing your tax return as a partnership (Form 1065), the company will never make estimated payments, as the profits from the company will be divided between the partners and each partner will receive a K-1 with their share of the partnership. As a partner, if you feel your tax liability is over $1000.00 then you will need to make estimated payments on your own behalf or be penalized.

Customer: replied 1 year ago.
I understand that if there is no profit, we do not pay taxes, but are we still required to file a 1040ES?
What are the dates of each tax quarter?
Since we are a newly formed LLC (formed August 2015), will we be required to file quarterly taxes immediately? I read somewhere that new businesses are exempt the first calendar year. Is that true?
Expert:  Angie replied 1 year ago.

This is not true...someone may have said something similar to that based on the fact that most businesses run in the red for the first year or so. But anytime your tax liability exceeds $1000.00 (personal) for the year, you are required to pay estimated taxes. The IRS doesn't break your income down by quarter...if you feel that you will have a liability over this amount then you should make estimated tax payments.

Keeping in mind...if the business profit is $5000.00 divided between two partners, the tax liability on this is not going to be over $1000.00 so you have no requirement to pay estimated.

This is one of the lower IRS penaltys...I had a client last year owe $5000 and his penalty for not paying estimated taxes was $16.00. This is based on his previous year's return and estimated payments that should have been made on that.

Expert:  Angie replied 1 year ago.

Does this answer your question? Feel free to request clarification of any thing that is unclear. Positive feedback is very much appreciated, as this is how I receive credit.