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August 28, 2024
Question

New LLC and tax filing

  • August 28, 2024
  • 2 replies
  • 0 views

Hi , 

 

I have just opened a new LLC this month August 2024. Please advise when i need to start doing the taxes.

I am yet to recieve any payments in this LLC. 

Thanks,

Ahmed

    2 replies

    August 28, 2024

    If this is a single member LLC and no S-corp. election made, you will report all income and expenses on your personal return under Self Employment Income.  That means you will file taxes next year. You might want to take a look at estimated quarterly tax payments to see if you need to make any estimated payments to IRS and/or state. 

    Estimated taxes | Internal Revenue Service (irs.gov)

    If it is a multi member LLC, you will file form 1065 (Partnership return) and then report income your personal return from Schedule k1 from partnership.  

     

    August 28, 2024

    Thank you Dev, this is a single member LLC which has just started and will be receiving funds from September 2024. I will have W-2 till August 2024. 

    August 28, 2024

    Thanks for confirming. Then as I mentioned, you will report all income and expenses when you file your personal tax return next year. 

    claywallace
    September 7, 2024

    Just to clarify, since you indicate you are a single member LLC with income starting in September, you are required to pay estimated tax payments if you expect to owe tax of $1,000 or more when your return is filed. You would file a Schedule C which is included with your 1040 return and any withholdings via an employer will be included as payments with your return.  The total income earned on a W2 as well as your self employment earnings on a 1099 or otherwise via your LLC will also be included.  It would be advised to make the last two ES payments if you believe you will owe:

     

    Payment Period Due Date
    January 1 – March 31 April 15
    April 1 – May 31 June 15
    June 1 – August 31 September 15
    September 1 – December 31 January 15* of the following year. *See January payment in Chapter 2 of Publication 505, Tax Withholding and Estimated Tax

     

    You can use the taxcaster to estimate your income and tax due.  Self employment income (LLC) is taxed at 15.3% for social security and Medicare on top of regular income tax for your tax bracket.  You can use this table for 2024:

     

     

    cheers!