How to File LLC Quarterly Taxes? (Simple Guide)

Jon Morgan
Published by Jon Morgan | Co-Founder & Chief Editor
Last updated: July 30, 2023
Methodology
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Paying taxes every quarter is a beneficial option for limited liability companies primarily because it entails lower, regular payments which is easier to budget in terms of business cash flow.

Many new LLC owners are not aware that they may be able to file taxes every quarter, depending on their tax situation. The result is many LLCs end up filing taxes annually when they could be saving themselves some money by filing taxes quarterly.

After comprehensive research and analysis, our team of legal experts and business consultants with over a decade of practice will provide you with a procedural approach on how to file quarterly taxes if you're part of an LLC.

Quick Summary

  • To file LLC quarterly taxes, find out if you are required to pay estimated taxes, determine the due dates, calculate the estimated tax you'll owe, and fill out and file your tax return using the proper IRS form.
  • File your LLC quarterly estimated taxes based on the structure of your company, single-proprietorship, partnership, or corporation.
  • Filing quarterly estimated taxes will require smaller payments and avoid penalties.


5 Steps to File Quarterly Taxes for LLC

Taking down notes on how to file quarterly taxes for an llc

We've broken down the procedure into five steps to file quarterly payments for LLC.

Step 1: Check to see whether you're required to pay estimated taxes.

You are required to make estimated tax payments if you expect to owe at least $500 in federal taxes for the current year after subtracting your withholding and credits. You'll need to determine this by reviewing last year's return.

Step 2: Work out when you'll pay.

In general, the IRS will only allow you to pay quarterly taxes once each month and no less than two days after that month's end.

If your quarterly tax payments don't cover all four periods, you'll have to make up the difference with a payment for the annual return. If this is still not enough, it won't be an issue as long as you've paid enough in each quarter.

You'll need to make sure that your bank account is registered for direct debit or set up EFTPS before you can pay your quarterly tax.

Step 3: Calculate How Much Tax You'll Owe.

Computation of taxes using a calculator

Your first step in filing quarterly payments for an LLC is to calculate how much tax you'll owe. It is important to be aware of the tax bracket your income falls into [1].

If your numbers are anything higher than that, it's time to start thinking about upping your weekly or monthly withholding by changing the number of allowances on your W-4 form.

Step 4: Fill out your tax return.

You can file your estimated taxes online by filling out Schedule(s) C-EZ, E, and/or F if you own a sole ownership LLC. If you're part of a multi-member LLC, then you'll be filing on Form 1065.

If you did not conduct any business and your net profit or loss is only $400 or less, you'll need to file Schedule(s) C-EZ.

Step 5: Make your quarterly tax payments and check the IRS website to see if it's reflected.

Make your quarterly estimated tax payments through EFTPS, online, or over the phone (1-800-555-4477). Check the IRS website to confirm payment and see if it's reflected.

If you want more flexibility in when and how much you pay quarterly taxes, then it's best if you send a check with your tax return. Let the IRS know if it's sent or when it was sent.

Estimated Tax And Filing Quarterly

Two employees discussing estimated quarterly tax and filing

When you pay estimated tax and file quarterly, the amount is computed based on the projected income for the next three months.

Each quarter you estimate your income, and then you pay the appropriate amount of money into that quarter's return.

Because most individuals' incomes do not reflect the profits and losses from running a business, it is best to file your taxes under the entity that most closely matches your business's needs.

1. Filing Quarterly Taxes For LLC Sole-Proprietorship:

If your company falls under this category, then filing quarterly taxes is pretty simple. You can simply list your taxable income and multiply it by the percentage that applies to you.

If you file as a sole proprietor, then you may be liable to pay a self-employment tax—which can amount to 15%. If you file as an LLC, partnership, or S-Corp, then your business does not pay self-employment tax.

2. Filing Quarterly Taxes For LLC Partnership:

If your business is taxed as a partnership, then you will need to file using Form 1065. This form must be filed with both your personal income tax as well as corporate taxes.

However, you will only need to make estimated tax payments based on your share of the partnership's taxable business income.

3. Filing Quarterly Taxes For LLC Corporation:

For an LLC Corporation, normal corporate tax applies and you need to file with the 1120 form. This applies whether the corporation is classified under a C or S [2].

4. Filing Quarterly Taxes For a Single-Member LLC:

If your company is a single-member LLC or disregarded entity, then you will need to file quarterly taxes just like any other business since you will be paying self-employment taxes.

In general terms, profit and loss are calculated by deducting the business expenses of the LLC from its revenue.

A business expense is considered to be ordinary and necessary and one that a reasonable business would use.

Quarterly Tax Returns and Payment Due Dates:

Using a laptop with a document beside

Quarterly tax returns and payment due dates fall under:

  • January 15, April 15, June 15, and September 15 (of the following year) for Estimated Taxes.
  • January 30 (for corporations only) & February 14 (for LLCs/partnerships) to File and Pay Corporate Income Tax Returns.
  • April 17th, June 15th, September 15th, and January 31st (of the following year) for Filing Personal Income Taxes.

Estimated Taxes are compounded twice and then divided into four installments throughout the year.

At the end of the tax year, IRS-estimated tax payment vouchers will be delivered. Whether or not IRS vouchers are sent, you are responsible for paying estimated taxes.

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FAQs

When is Form 1040-ESS Due?

Form 1040-ES is due by 1st April, 15th June, 1st September, and 16th January. After this, you will only need to pay the tax if your withholding plus quarterly estimates were not enough to cover your tax liability.

Should I File Estimated Taxes If I Have a Side Business?

You should file estimated taxes if you have a side business and if your LLC makes above $400. You can file quarterly or simply make one large tax payment for the whole year (but remember to pay it by the 15th of April).

Can I File My Own LLC Taxes?

You can file your own LLC taxes if you have a side job. If not, then go to a CPA who is familiar with working with self-employed businesses.

LLC Quarterly Taxes

Paying LLC quarterly tax reduces tax liabilities and penalties, eases company cash flow, and keeps your business up-to-date and organized.

Don't put off filing quarterly tax for an LLC or any other business. You can use this guide as a reference to make the process as easy as possible.

You can also read the best QuickBooks for an LLC to help with organizing and tracking your business finances. The site will also provide you on how to expand and grow your business.

References:

  1. https://smartasset.com/taxes/current-federal-income-tax-brackets
  2. https://www.irs.gov/businesses/small-businesses-self-employed/llc-filing-as-a-corporation-or-partnership

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