I just learned about the quarterly tax filling for LLC.

[r0sabr0y]

How do I catch up on my payments?

What if I also have a rented property (not associated to the LLC), can I fill this part with my personal taxes in April?

[JBedford]

Hi, @r0sabr0y , thanks for your question! 

The bad news is that you can't necessarily "catch up" on estimated tax payments that were not made by the quarterly deadlines. However, you can at least minimize any negative impact. Simply make a payment by the next deadline, which is September 15, in the total amount that you would have paid by now if you had made the desired payments in April and June. Also, if you pay enough in so that you owe less than $1,000 when you file your tax return next year (or even better, enough to get a small refund), this may ameliorate any penalties. 

As to your second question, if you have a single-member LLC, that will also be filed as part of your personal tax return. Any rental income outside of the LLC would be as well, assuming that you are the only owner. Only a multi-member LLC would require a "business" tax return, which would also be filed next year. But you still might want to make estimated payment for all of this activity. 

Hope this helps, please let me know if not! 

[r0sabr0y]

It's a sole-proprietorship LLC.

The rental use to be my home till last year and belongs to both my husband and I (again, it's a personal property, independent to the LLC).

More questions: 

- Are all LLCs obligated to fill quarterly? or is there a minimum income?

- Does TurboTax provide any services to help with quarterly payments? how much to pay, etc? If not, where can I find more info to do it myself?

- What should I expect to pay for the property rental in Chicago, IL?

[JBedford]

1) It has nothing to do with having an LLC. It has to do with earning self-employment income, which does not have any tax withheld. One should make estimated tax payments if not doing so would result in an underpayment penalty. 

2) The bare minimum you should pay is 100% of your 2022 tax liability from Line 24 of your Form 1040. If you make over $75,000 as a single filer, or $150,000 if married filing jointly, in self-employment income, then you should pay 110% of that number. You would pay this in four quarterly payments of 25% (or 27.5%) each. This will allow you to avoid an underpayment penalty. Also, don't forget to count any other tax payments you make. For example, if you have tax withheld from a job. This will reduce the amount you need to pay. 

3) The Illinois income tax rate is a flat 4.95%. 

[r0sabr0y]

I opened the LLC in January 2023. Moved from the corporate world to freelancing through the LLC (service company) and had no income till April. Line 24 from my personal 1040 2022 tax form is way above the income the LLC has had to date. 

I was recently told that a 40% of the self-employment income is a good ballpark. Does that sound accurate in this scenario?

What about the rent income? Do I add the 4.95% of the rental income into those quarterly payments? As mentioned, this is not part of the LLC, do I make a separate payment from the LLC?

[JBedford]

The 100-110% of last year's tax liability is a "safe haven" allowed by the IRS and since it's an exact number that you can look up, that's usually what I recommend. Keep in mind that your tax liability is going to be reflect all your income, not just your self-employed income, but other tax payments you may make (such as withholding) are going to be factored in as well. 

The 4.95% is for state income tax. For federal income tax, I still recommend sticking with the 100-110% amount, it's just the simplest way. 

Hope this helps!