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I've started an LLC in quarter 2, did some work and got paid. It was a great amount of fun! Now the terrible part. I need to pay taxes.

I'm okay with that. I knew the day would come. But the question is HOW? I have an EIN number, and my LLC is registered in Wisconsin, but that's it. I haven't registered either with Wisconsin or the IRS to pay taxes, and after my fruitless hours searching Google, it appears to me that they don't want me to know how to pay them!

July is almost over, I haven't paid taxes for quarter 2, and I've heard bad things about jail. What's the process of getting my money into their hands?

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3 Answers

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It's up to you to pay your taxes and setup your tax account with the Federal Government and your state.

Usually, you pay quarterly, depending on the type of business and the revenue stream/taxes owed.

If you take a look at this site: http://www.revenue.wi.gov/eserv/index.html you will find how to pay for Wisconsin.

As for the Feds, see this link http://www.irs.gov/businesses/small/article/0,,id=98277,00.html for how they deal with it. You are either considered and individual or you file as corporate.

@NetTecture makes a good point -- hire an accountant. That way, you can get setup properly and not have to worry about it.

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Thanks for the links. I asked on a mailing list I'm on (with other independent iPhone app developers) and they all said she same thing: Quit thinking accountants are expensive and think how expensive it'll be when you screw up. sigh – wjl Jul 19 '11 at 22:42
Add to that whether you want to deal with the paperwork. If I do I end up in a mess after 2 months ;) So, I rather outsource that and earn more money. – NetTecture Jul 19 '11 at 23:39
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Do you have employees or is it just you? If just you, then LLC can be pass through taxation. If you have another job in addition to your self employment then you might even be able to get away with not doing quarterly payments (depending on the relative income from your day job and self employment).

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up vote 1 down vote

Three words.

GET AN ACCOUNTANT.

Now. may already be late ;)

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