How To Do Single Person LLC Accounting?
I am in a single person LLC, so I am allowed to file my taxes on my personal return and I don't have to cut myself paychecks. I would prefer to take all of the money out at the end of the year. However, I still need to pay estimated taxes each quarter, so what is a good way to compute payroll taxes that I need to remit without actually cutting myself a check as well? Maybe even a recommended payroll "tutorial" would be helpful as I am kind of foggy on this area.
Solo Entrepreneur LLC Accounting Payroll
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This sounds like a question for your accountant – Susan Jones 13 years ago
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@Susan Jones - While I agree an accountant is good, my needs are pretty general here. I feel like any tax related question just falls into the accountant bucket, but I could be pointed to general resources that can help me learn before asking focused questions to an accountant. – Skaz 13 years ago
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Google hasn't unearthed anything? – Susan Jones 13 years ago
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@Susan Jones - not anything focused and comprehensive. Besides, I thought people here might have strong resources. Google has the answer to every question if you sift long enough. I thought I could call upon expertise and experience here so I asked here as well. – Skaz 13 years ago
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@Susan: Google actually unearths this page. – Fixee 13 years ago
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Lol. That shows the site is doing a good job! – Susan Jones 13 years ago
1 Answer
IANAA but my understanding is that LLCs do not have a payroll tax. You are, of course, responsible for income tax which would be calculated as if you had a job that paid you your profit. Add to that self-employment tax and your tax situation should be covered.
An easy rule of thumb is to sock away your tax percentage (tax bracket + self employment tax) for each sale/contract/etc. and pay that amount each quarter.
If it helps to clarify in the case where a single person LLC that is not filing as a corporation the LLC is ignore for tax purposes and you are merely claiming a regular individual tax return.
