Hi there:
1. Would I need to submit any payment considering there is no net income? Not unless you have income from all sources such as business, wages, stocks, etc.
2. In either cases, would I need to do any special filing to communicate my financial situation to the Federal or Ohio tax authorities? The state requires heavy lifting in that there could be myriad of local & state licensing requirements. Please contact your state and local taxing authorities for specific information)
3. I assume I can carry any expense accrued this year to the next year for tax calculation purposes, correct? If the loss is not absorbed in the current year then it can be carried forward as a net operating loss.
4. From my understanding, as a sole proprietor in an LLC, I can make draws from my business at any time. When it happens, I believe I would have to reserve a portion of that money I drew for tax payments. I assume that reserved money would be going toward the quarterly tax payment? No, draws in themselves are not taxable and do not affect ES payments. However the ability to draw could represent taxable income which would affect ES payments.
5. (Continue from #4) Would I need to file 1099 for this draw from the business account? A 1099 to yourself is not required.
6. Is this quarterly tax payment be required for the LLC as an entity AND for me personally? For example, LLC will have to pay quarterly tax payments on the profit while I will have to make quarterly payments for the withdraw from business to my personal account? Your quarterly estimated tax payment will comprise estimated tax on all sources of income including business and personal. You can use any account to pay it. However, the payment is not deductible.
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