Multi Member LLC for Beginners

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Hi Turbotax,

Love the event you are hosting today! 

My question is as follow: 
My two business partners and I formed a Multi Member LLC last November! We are a Theater & Animation Production studio based out of Austin, Texas. I have been learning as much as I possibly can in order to stay compliant and not miss anything important.

I understand that as a MM LLC, all the taxes are taken care of through our own personal Tax accounts, and it is up to us in our operating agreement to decide who has to pay how much in tax depending on how our business is structured.

Are the managing members to still file quarterly, and if so, do we just do the accounting on our own and then just report them as 'expected tax' with Turbo Tax, which will then be paid the following year? This might open it up to more questions, however I guess I am just looking at the most straight forward answer to everything that we need to expect to be doing, of course, by using Turbotax!

[CatinaT1]

It depends on each members tax situation. For some it might be necessary to make quarterly payments, but others it might not. Each member will need to do their own accounting as far as what they expect to have due for taxes. If they prefer not to make quarterly payments, they could choose to have additional money withdrawn from their payroll if they are also a W2 Employee. 

It's really not an easy or straightforward answer because there are so many variable based on each members situation. The Self-Employed Tax Center has good information on if you need to make quarterly payments.

Here are some links that will be useful to you:

Self-Employed Tax Center  

Tax information for Businesses  

[Mike9241]

as a multimember LLC engaged in a trade or business did you file form 1065?  I assume you did not elect S-Corp taxation which would require salaries and the filing of form 1120S.

Failure to file the 1065 by the due date of 3/15 could subject the partnership/LLC to penalties of about $200/partner/per month late. Direct reporting of the operations on your 1040 is not appropriate. the LLC issues a k--1 to each member which is the way the activity gets reported on each taxpayer's 1040.

you may want to consult with a tax pro becuase I don't think you fully understand the reporting requirements and payment of income taxes - which is done personally and not through the LLC.