Question

sole prop LLC and estimated tax

Forum|Forum|4 years ago
October 27, 2021
1 reply
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Hi,

I have sole prop. LLC which I run as part-time consulting along with full-time job. Do I need to pay estimated tax for my LLC every quarter ? if so, how do I calculate that ? also, what's the penalty for not paying estimated tax on time?

Thanks.

A

AmitaR

Whether or not you need to pay estimated taxes depends on actual amounts. The amount of your wages, amount of federal and state taxes taken out from the wages, and amount of Income earned from the Part-time Consulting work. You could have enough tax withholding taken out from wages, then you will not need to send in any Estimated Payments. You can use this IRS Withholding Calculator to do your paycheck checkup

https://www.irs.gov/newsroom/taxpayers-can-follow-these-steps-for-using-the-withholding-calculator-on-irsgov

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