taxesI’m a complete beginner. Just formed my first (single member) LLC.
Now, I am reading that quarterly estimated taxes are due, but I have absolutely no clue how to estimate my taxes or file with the IRS. Can someone please help with the “for dummies” version of this process!
I file my personal taxes annually through TurboTax.
That’s all I know.
Basically it works out to dividing your expected taxes for the year by 4 and paying that amount at the end of the quarter.
The 1040-ES has a section on how to figure out your taxes. The simplest way is to take your taxes that you did last year, assuming you make the same this year, and dividing that out.
You can still do your taxes annually but you will have to pay interest on the taxes that you didn’t pay throughout the year. I know some people who do that because they can get short term investments that are more than the interest rate so they end up netting a little bit holding on to it and paying the interest.
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