I created an LLC (sole proprietorship) in October 2023 and had no income during the rest of the year.
I got my first payment in January 2024 but didn't pay any estimated taxes in Q1 thinking that everything was due by the end of the year. After doing some research I figured out that I have to make quarterly payments made up of self-employment taxes (SS and Medicare) and income tax.
Now I am trying to catch up on the missed payments. My questions are:
- Am I subject to penalties for the missed 2 quarters although it's the first year of my LLC?
- How do I make up for the missed quarters? Do I just pay the estimated total amount due for Q1 and Q2 in one transaction or should I proceed differently?
- How do I pay for the Social Security and Medicare portion? Should I add the 15,3% to the income tax and pay the full amount to the IRS in the same transaction or is there another link for this?
- I read somewhere that the quarterly estimated tax amount is usually the same for the 4 quarters based on last year's income. Since it's my first year, I did my calculations based on the actual income and expenses for each quarter, so the estimated taxes vary from Q to Q. Is that correct?
- Last question, what are the State tax obligations. Is there a self-employed quarterly filing at this level as well? I am in Arizona.
Thank you!
