Our tax system is “as you go” so you will want to estimate your profit quarterly and pay based on that estimate. You’re responsible for all of your FICA – Social Security and Medicare – along with income tax on your profit. Determining what to pay and when is crucial to avoid penalties and interest on underpayment of tax. Here is a great resource on how to pay estimated taxes.
An LLC is a separate legal entity, but the IRS doesn’t consider it a separate tax entity. From the IRS viewpoint a single member LLC is called a disregarded entity and is still taxed the same as a sole proprietor, unless you make an election to be taxed as a corporation using form 8832. When you file your 1040 tax return at the end of the year, if you didn’t make the entity election to be taxed as a corporation, you will file a Schedule C along with your 1040. TurboTax will guide you through the entries required to generate this form. If you made the entity declaration, then your LLC will file a separate tax form, either 1120 or 1120-S, based on the election you made.
To ensure the LLC is fully compliant will take some research, especially on the state level, as an LLC is a state entity. Your state department of revenue will have resources for LLCs.
I'm working under the assumption that your LLC is a single member LLC that will be classified as a sole proprietorship. Here are some great resources to assist you going forward. When you land on this site, please scroll down to the tools:
https://turbotax.intuit.com/personal-taxes/self-employment-taxes/
Hope this helps!
Cindy
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