You said….
IRS says that "individuals, including sole proprietors, partners, and S corporation shareholders generally have to make estimate tax payments." Since I am a single-member LLC, my assumption is I am not required to submit quarterly filings, correct?
Not correct. A Single Member LLC that is not an S corp is a disregarded entity and you file it in your personal tax return on Schedule C. It is the same as Sole Proprietor, self employed, independent contractor, freelance, etc. You file it as an individual.
You can increase your W2 withholding to cove the self employment tax or…..
You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.
- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months).
