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15 Replies Latest reply: May 26, 2009 10:47 AM by natuning RSS

Single owner/employee LLC. Tax filing procedure.

shin001 Newbie
Currently Being Moderated
Friends,

I've opened a LLC company in NJ this month and I am the only one owner/employee of this company.
I do computer consulting service providing services to multiple clients and get paid on Corp to Corp basis.
most of the times i use my apartment(rented) for the business and some times I do go to the client's place.

My questions are,

1)How can I file my taxes? Do I have to file my taxes once in three months or only once in a year.
2) also I would like to add my Apartment(rented) expenses( rent, internet service, utilities , car expenses etc). How can I do this?
3) what will be the average tax I have to pay ? it will be 30% or more?

 

I appreciate if some one could answer my questions .
.
  • Re: Single owner/employee LLC. Tax filing procedure.
    LUCKIEST Master
    Currently Being Moderated
    Welcome. You started a new business and registered as a LLC company in NJ.
    You have a Business Name?? and a Federal I D Number?? Do you have a Business Plan??
    To answer your questions, we are talking ONLY "Federal", NOT N J O K
    1) You have to file your Federal Income tax once a year. Payroll taxes every 3 months.
    Do you have a Business Checking Account??
    2) I would like to add my rent, internet service, utilities , car expenses etc. How can I do this.
    That is why you need an accountant.
    Good luck, LUCKIEST
  • Re: Single owner/employee LLC. Tax filing procedure.
    CorpCons08 Master
    Currently Being Moderated
    Why would you want to add your apartment (rent) to your business tax return?
    With or without the business you have to pay those expenses.
    You cannot claim a personal expense as a business expense.
  • Re: Single owner/employee LLC. Tax filing procedure.
    Lighthouse24 Master
    Currently Being Moderated
    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.
  • Re: Single owner/employee LLC. Tax filing procedure.
    Lighthouse24 Master
    Currently Being Moderated
    shin001 - Was that the info you were looking for?
  • Re: Single owner/employee LLC. Tax filing procedure.
    NetworkGuru Newbie
    Currently Being Moderated

    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.

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