taxes and self-employment (LLC)-Help me!

[Anonymous]

I've never done this before. Sole owner/employee, though I may add one other at some point (prob. part time).

Can someone tell me where I can find a good resource for explaining taxes (withholding and filing) and explain it to me like I'm stupid? NOT the IRS, which is confusing and long and cross-referencing.

[Anonymous]

If you’re a single-member LLC, it’s quite simple. Pay quarterly estimates to the IRS and your state. Save receipts for everything business-related. Set up a solo 401k with Fidelity. Keep good records of money coming in and going out. I use Excel but my LLC is not complex.

Don’t hire an employee unless you want a headache. If you need additional help, make sure they legally qualify as an independent contractor and issue a 1099 for them at year-end.

https://madrasaccountancy.com/blog-posts/single-member-llc-taxation-guide-how-it-works-what-you-need-to-know#:~:text=%E2%80%8DAnswer%3A%20Single%20member%20LLCs%20are,tax%20return%20using%20Schedule%20C.

https://www.llcuniversity.com/irs/llc-taxed-as-sole-proprietorship/

[Anonymous]

Have you been doing this all year? You are supposed to estimate your taxes and pay them quarterly. I would estimate 40%.

[Anonymous]

Anonymous wrote:If you’re a single-member LLC, it’s quite simple. Pay quarterly estimates to the IRS and your state. Save receipts for everything business-related. Set up a solo 401k with Fidelity. Keep good records of money coming in and going out. I use Excel but my LLC is not complex.

Don’t hire an employee unless you want a headache. If you need additional help, make sure they legally qualify as an independent contractor and issue a 1099 for them at year-end.

https://madrasaccountancy.com/blog-posts/single-member-llc-taxation-guide-how-it-works-what-you-need-to-know#:~:text=%E2%80%8DAnswer%3A%20Single%20member%20LLCs%20are,tax%20return%20using%20Schedule%20C.

https://www.llcuniversity.com/irs/llc-taxed-as-sole-proprietorship/

I agree with this. I use Quickbooks for accounting as it keeps things more organized for me and I can see my expenses by category.

You will also need to purchase a TurboTax or equivalent program for LLCs / Sole Proprietors. Taxes aren't that difficult and it will take you through figuring out your taxes, the self-employed payroll taxes you owe, the self-employed tax deductions you are eligible, figuring out your home-office deductions, etc.