So, the penalty for not making estimated tax payments is the underpayment interest rate, which is currently 8%. While there is no way to determine if you will not have a penalty, you do want to make the second and third payments on or before September 16, 2024. This will mitigate any potential penalty that you may incur.
If this is a temporary contract like you stated, I doubt that forming an LLC will make much of a difference tax wise and a cost/benefit basis. Ultimately, you would most likely file the LLC and the current unincorporated entity on a Schedule C in your personal tax return.
Thank you so much for your question @PS01
Thank you so much for your question
Be well and safe!
Marc T.
Turbo Tax Expert
27 Years of Experience Helping Clients
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