Your self-employment tax as an LLC is calculated at the same rate as sole proprietorship and partnership self-employment taxes. Ideally, the payments should be even, meaning that if you're going to owe a total of $4000 in taxable income on your LLC, the IRS wants you to pay $1000 for each of the business quarters. The quarterly estimated taxes are what you anticipate bringing in as taxable income for your LLC. If your LLC files taxes as a corporation, it generally won't have to pay self-employment taxes. ![]() Both of these apply in most business forms. When you're preparing for your LLC taxes, make sure that you account for quarterly estimated taxes and self-employment taxes. Remember Quarterly Estimated Taxes and Self-Employment Taxes Apply The penalties vary based on the difference between the taxes you actually paid and the taxes you should have paid. You can't decide unilaterally to file your taxes in a different form. ![]() If you petition the IRS to change the status of your LLC's taxation, you'll have to wait until your request is approved. If you are starting an LLC with at least one other person, you'll be taxed as a partnership. If you are starting an LLC on your own, then your LLC is taxed as a sole proprietorship. When you file your LLC Operating Agreement or articles of incorporation to start up your LLC, you will have a default setting for your taxes.
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