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Second opinion] I just started a single member LLC last

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year. I won't be making...
Second opinion] I just started a single member LLC last year. I won't be making much this year. Do I need to file quarterly self-employment tax each quarter or can I just file in April.? Is there a dollar amount made when I should file quarterly? Or is filing quarterly or at one time in April due to the way I pay myself (draw vs salary)?
Submitted: 4 months ago.Category: Tax
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Answered in 1 hour by:
3/9/2018
Tax Professional: Lev, Tax Advisor replied 4 months ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,140
Experience: Taxes, Immigration, Labor Relations
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Your estimate quarterly taxes will be based on your expected tax liability - if you expect to owe less than $1000 - you are NOT required to pay quarterly - and may pay your full tax amount by Apr 15 of the following year.

With a single member LLC - unless you choose it to be classified as a corporation - you do not need to have a payroll - you are free to manage your personal draw.

But that will not affect your tax calculations which will be based on your net business income - regardless if you take or not any money for personal use.

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Tax Professional: Lev, Tax Advisor replied 4 months ago

Generally, most taxpayers will avoid this penalty if they either owe less than $1,000 in tax after subtracting their withholding and refundable credits, or if they paid withholding and estimated tax of at least 90% of the tax for the current year or 100% of the tax shown on the return for the prior year, whichever is smaller.

So - if you have a regular job - you may ask on W4 form to make larger withholding - and that will cover your possible additional liability on business profit.

That will allow to avoid quarterly estimate payments.

Let me know if that helps.

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