How many times a year do LLC's have to file taxes?
If I start an LLC where I am the only owner, do I only have to file taxes once a year (without getting penalties of course)?
3 Answers
Be careful. Although you only file your income tax form once a year, depending on your situation, you may have to pay quarterly estimated taxes. If your LLC is profitable to the point where you will be required to pay income taxes and you are not employed by someone else who withholds taxes for you, you will most likely have to pay estimated taxes. Talk to an accountant about this or read IRS Publication 505 Tax Withholding and Estimated Tax.
If you are required to pay quarterly estimated taxes and you don't, you will have to pay hefty fines to the IRS.
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ah, I see. Well, I have a full time job right now and I don't see that changing anytime soon. I'll check out that link... Thank you. – Robert 14 years ago
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If you have a fulltime job, you should be okay, as long as your employer is withholding enough from your paycheck. – Zuly Gonzalez 14 years ago
The filing of taxes for an LLC can be based on the time when one files an income tax. So you have to file your income tax once already including your LLC.
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Haha thanks! I really think you need to do alot more research, I went through at least 2 weeks of research just to be thorough, but that was also coz we were trying to figure out between a Corp and an LLC. – Vnchopra 14 years ago
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Yes you file as often as you do alone, but remember that even alone you have to file quarterly... The only reason most people don't is most people have their taxes withheld even more often -- in every paycheck. – Jason 14 years ago
When you are the only member in an LLC, you are by default what is called a "disregarded entity" which means the IRS treats the LLC as if it doesn't exist for tax purposes. Therefore, you do not even need to file an LLC tax return with the IRS, but instead file it on Schedule C of your personal income tax return.
However, you may have to file a tax form with the State of your incorporation, particularly since many states charge a minimum tax even if your LLC does not do any business.
If you are only an individual, you only need to worry about personal income taxes on April 15th, and state tax deadlines. In addition, if your income is above a certain threshold, you will also need to file estimated taxes, the same way as if you had business income that was personal as well.
Note: This is not legal advice, and does not create an attorney-client relationship.
