Estimated tax

[Elina G]

I am a small business owner (single member LLC).  In 2022 I have been employed by another company and now I am on W-2. My LLC does not have any income, but remains active (not terminated) in 2022. 

Question: Do I still need to pay estimated tax quarterly for my LLC? 

[JohnB5677]

No, provided you are having the proper withholdings from your W-2 income, and you have no self-employment or other untaxed income you do not have to pay quarterly taxes.

[Elina G]

Thank you for the reply. What if I resume my self employment activity later in the year (in Q4 2022)? If this happens, my income for 2022 will only be about 25% of my income in 2021. I don't plan o resuming my self employment activities, but I don't want to be restricted if I decide to by knowing that I owe SE tax in the amount that I paid in 2021. 

[AliciaP1]

Your self-employment tax is calculated off your net income from your business.  If you do resume your business activities late in the year, your income will clearly be significantly reduced from last year and therefore so will your self-employment tax.