I know I need to file something on Jan 15 for Q4…. is that for Federal/State or both?
I was also told that I should also file the same form for each quarter in 2024 if I had no income in them just to prove I didn't miss a payment... is that a good assumption?
Unless you elected to be taxed as a corporation for federal tax purposes, your Single Member LLC is treated as an entity disregarded as separate from it's owner for income tax purposes. That means that the income and expenses of your LLC will be reported on your personal tax return, on Schedule C, Profit or Loss from Business (Sole Proprietorship).
With that being said, the only income tax consideration you have to consider each quarter is whether or not you should make an estimated tax payment. Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If you are in business for yourself, you generally need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax.
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
So, each quarter you should estimate and review your total income and any withholdings you currently have to determine if you need to make a quarterly estimated tax payment. If you need to make a quarterly estimated tax payment, you would do so on Form 1040ES, or you can go to the IRS website at www.irs.gov, click on the button that says "Make a Payment" and follow the prompts to make an estimated tax payment. The instructions to Form 1040ES have worksheets you can use to determine whether or not you need to make an estimated tax payment - you can find those instructions for 2024 at this link here: 1040ES Instructions Alternatively, there are several calculators you can find online to help you estimate and determine whether or not you need to make an estimated tax payment.
For the state of Michigan, you would generally be required to make estimated quarterly tax payments if you expect to owe the state over $500.
You are totally fine - your company can obtain a separate EIN number (important for things like employment taxes and excise taxes) but that does NOT make you a corporation for federal income tax purposes.
To elect to be taxed as a corporation, you would have filed Form 8832, Entity Classification Election, or Form 2553, Election by a Small Business Corporation.
Unless you elected to be taxed as a corporation for federal tax purposes, your Single Member LLC is treated as an entity disregarded as separate from it's owner for income tax purposes. That means that the income and expenses of your LLC will be reported on your personal tax return, on Schedule C, Profit or Loss from Business (Sole Proprietorship).
With that being said, the only income tax consideration you have to consider each quarter is whether or not you should make an estimated tax payment. Taxes must be paid as you earn or receive income during the year, either through withholding or estimated tax payments. If you are in business for yourself, you generally need to make estimated tax payments. Estimated tax is used to pay not only income tax, but other taxes such as self-employment tax and alternative minimum tax.
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
So, each quarter you should estimate and review your total income and any withholdings you currently have to determine if you need to make a quarterly estimated tax payment. If you need to make a quarterly estimated tax payment, you would do so on Form 1040ES, or you can go to the IRS website at www.irs.gov, click on the button that says "Make a Payment" and follow the prompts to make an estimated tax payment. The instructions to Form 1040ES have worksheets you can use to determine whether or not you need to make an estimated tax payment - you can find those instructions for 2024 at this link here: 1040ES Instructions Alternatively, there are several calculators you can find online to help you estimate and determine whether or not you need to make an estimated tax payment.
For the state of Michigan, you would generally be required to make estimated quarterly tax payments if you expect to owe the state over $500.
@K M W, Just a follow up question regarding:
"Unless you elected to be taxed as a corporation for federal tax purposes, your Single Member LLC is treated as an entity disregarded as separate from it's owner for income tax purposes."
For my case:
I have filed for an EIN number, but did not elect to register as an S or C-Corp.
Does that mean I elected to be taxed as a corp for federal tax purposes? Or is there another thing that determines that?
Thank you again!
You are totally fine - your company can obtain a separate EIN number (important for things like employment taxes and excise taxes) but that does NOT make you a corporation for federal income tax purposes.
To elect to be taxed as a corporation, you would have filed Form 8832, Entity Classification Election, or Form 2553, Election by a Small Business Corporation.
Ok thank you for clarifying with the form numbers. I have not filed either so I'm not a corp in their eyes.
Great, so as you didn't file either of those forms, the IRS will treat your Single Member LLC as a sole proprietor, and you will report the business income and expenses on your Form 1040, using Schedule C. The IRS considers you self-employed, a sole proprietor.
As such, you will be assessed income taxes and self-employment taxes for your business income on your personal income tax return.
Do look into an online tax estimator calculator to determine if you need to pay any estimated taxes to the IRS or to the state.