Question by business owner 589: When and how does small business taxing work?
Background info–I started my business in June, during the month of June I didn’t not receive any revenue–but I paid out of pocket for all business expenses personally.
Then starting in July I was paid. But didn’t not have my LLC set up.
In August I got my LLC set up and have a bank account with the company.
According to my accountant, she says I should do my taxes as a sole prop–meaning i need to pay now, for three months and don’t count in June and then track back at the end of the year. But this is making me pay more taxes now, which I really don’t want to–as those were all expenses I can take off my bottom line or maybe I can say i paid myself back in July. Meaning only do taxes for July Aug and Sept.
Answer by Dr. Deth
what taxes are you talking about? estimated income taxes are only paid quarterly. and before you were an LLC any income and expense would be reported on your a schedule C for your 1040, so your income will be reduced there for your June & July expenses. You may owe an estimated 1040 tax payment for the June – July net income
Are you paying official payroll to yourself thru the LLC? if yes, then you have payroll taxes for fed and state that need to be paid probably monthly to start
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