sole proprietor llc profit less than $400

Forum|Forum|1 year ago
August 28, 2024
3 replies
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I have a new LLC (single member). I project I will make $400 gross. Would I need to file quarterly or only on my annual income return? Thanks

evelynm

You are required to file Schedule C if your single member LLC's income exceeded $400 for the year so be sure your income is actually $400 or less accordingly. No quarterly estimated tax requirements at that income level.

Have an amazing day. Evelyn M (CPA 20+ years)I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer"

Mike9241

That's reported on schedule C - regardless of amount. which is included with your annual 1040. With this income less than $400 there is no self-employment tax but depending on what else is on your 1040, if required to file, there could be income taxes. if that was you only income for the year there would be no requirement to file a 1040.

there are many rules for dertimining if you will have to file a 1040 for 2024. once the 2024 instructions are available you can go to the IRS website and review the 1040 instructions Charts A, B and C to see if you have to file.

estimated tax payments for 2024 would be required if you would owe more than $1000 after deducting any withholding from your tax liability

you can use a tax estimator such as Taxcaster (based on 2023)

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

there are other websites for 2024 use at your own risk

VolvoGirl

Employee

It also depends on if you set up your Single Member LLC as an S Corp. If you did then it doesn’t go on your personal 1040 return but a separate 1120-S Business return.