Home: Message List - Single owner/employee LLC. Tax filing procedure.

Re: Single owner/employee LLC. Tax filing procedure.

natuning — Tue, 26 May 2009 14:47:11 GMT

Thanks NetworkGuru.

In the same boat as shin001 and you I guess.

I have the State taxes figured out but still confused about the Fed taxes.

I am by myself (no employee)
My company is an LLC and is authorized by the IRS to be taxed as S-Corp
For 08, I had a loss which I reported on my 1040
For 09, I will make a profit and will report the income on my personal 1040

Am I considered "Self-employed" or "Employee"?
Am I supposed to estimate Withholding?
How do I file/pay SS and Medicare?

Thanks very much.

Re: Single owner/employee LLC. Tax filing procedure.

NetworkGuru — Wed, 12 Dec 2007 04:18:57 GMT

No. It's the IRS financial quarters. The due dates are:

April 15
June 15
September 15
January 15

If you missed some this year, it's ok. Just remember to put money away for your taxes and start filing your Quarterlys from this point forward.

For aditional help and reminders, you can also try http://estimatedtaxes.intuit.com

Best of luck

Re: Single owner/employee LLC. Tax filing procedure.

shin001 — Wed, 12 Dec 2007 02:39:31 GMT

Hi networkGuru,

Thanks for the useful info.
Let me spend some time at IRS site and then decide whether I can file my tax on my own or I need a Tax advisor.

I've one more question.

I've registered the LLC on 11/15/07 and my first tax filing should be three months from 11/15/07 right?

Re: Single owner/employee LLC. Tax filing procedure.

NetworkGuru — Tue, 11 Dec 2007 21:49:00 GMT

shin001,

I am in the same position as you, a computer services LLC with 1 member...myself. I've filed my own taxes for 2 years...without a tax consultant. Be careful of them, sometimes their recommendations are not always accurate. Sorry guys. Make sure you pick one that works with your type/size of business.

As for getting refunded some of your expenses, here is how it works. Your "Office Space" must be used only for business. If your office is also your bedroom, or living room, you cannot claim it. If it's a dedicated room, measure the square feet of the entire apartment, then of your office. If the office is 10% the size of your apartment, then you can claim 10% of your rent on your taxes. Same with utilities.

For your car, write down all of your mileage you drive for work. I keep a log in an excel spreadsheet of the mileage for each day which includes where I drove to and why, i.e. ticket number. You will also want to record the mileage on your vehicle at the beginning and end of the year. When your doing your taxes, which I use Home/Business TurboTax, it asks how many mile total you drove your car, and how many for business.

Lighthouse is right on the quartyerly taxes. I have 3 seperate bank accounts open. One is a savings account which I put 1/3rd of all my earnings into, before paying expenses. At the end of each quarter, I pay my estimated taxes with the money in that account. The leftover money... call it retirement!

The IRS has a great workshop DVD for businesses our size. It's called "A Virtual Small Business Tax Workshop DVD". They will mail it to you for free and I highly recommend it. To get it, go to http://www.irs.gov, select Small Business, then click Online Learning and Education Products.

As for someone doing your taxes, that's totally up to you. I prefer TurboTax Business. It's quick, simple and will walk you through all the steps.

Re: Single owner/employee LLC. Tax filing procedure.

CorpCons08 — Tue, 11 Dec 2007 19:35:15 GMT

If it means anything, I learned something from your post.
We pay a lot in taxes... :\

Re: Single owner/employee LLC. Tax filing procedure.

CorpCons08 — Tue, 11 Dec 2007 19:34:52 GMT

Good man, glad to see you are going to consult at tax advisor.

Re: Single owner/employee LLC. Tax filing procedure.

shin001 — Tue, 11 Dec 2007 16:43:33 GMT

Thanks for the info.
it looks like NJ tax is 3% and I will be paying 35-37% tax.
I will contact a tax consultant before I file the tax.

Re: Single owner/employee LLC. Tax filing procedure.

Lighthouse24 — Tue, 11 Dec 2007 07:51:38 GMT

shin001 - Was that the info you were looking for?

Re: Single owner/employee LLC. Tax filing procedure.

CorpCons08 — Tue, 11 Dec 2007 04:23:04 GMT

They really love the tax rates in this nation...

Re: Single owner/employee LLC. Tax filing procedure.

Lighthouse24 — Tue, 11 Dec 2007 04:20:02 GMT

If you're asking for estimates to plan with rather than professional accounting advice:

Filing your federal taxes as a LL corporation (as opposed to having elected to file as a partnership) your estimated tax rate is 15 percent if your taxable profit is less than $50K, 25 percent if your taxable profit is $50K to $75K, and 34 percent if it's $75K to $100K.

You'll file a federal tax return annually, but if your total tax would exceed $500, you must make estimated tax payments each quarter.

New Jersey has a state income tax on corporations -- I've never done business there, so I don't know anything about rates or rules. Try visiting http://www.state.nj.us/treasury/taxation/ for guidance.

Hope this helps.