LLC and paying quarterly taxes

Hey there. I was wondering if someone might be able to help point me in the right direction. I recently started up a consulting business providing online marketing services. I have an LLC setup. I have a couple questions. It is my understanding I can elect to pay taxes as a corporation? I would prefer to do this so I can leave some profit in the business, as opposed to "pass through" all profits to myself and/or my wife. My second question involves paying quarterly taxes, is this something that QuickBooks can help me calculate? Or are there better (cheaper) software tools?

4 Bizniks have posted replies

Posted by John Huddleston, Seattle & Bellevue, Washington | Jun 24, 2009

Ryan,

You can elect to have your LLC treated as a C Corporation or an S Corporation. You are suppose to do this within the first 75 days of the year or after creation. However, I have had good luck asking the IRS to treat the election retroactive.

I am hosting an event tomorrow on this very subject (entity selection and the tax effects). There are still two seats available.

Quickbooks can calculate your profit but does not have a tool for determining the required estimated tax payments. It is 90% of current year's tax or 100% or 110% (depending on AGI) of your prior years tax.

John Huddleston
Huddleston Tax Accountants

CPA tax preparation in Seattle Bellevue Tacoma
Posted by Ryan Burt, Seattle, Washington | Jun 24, 2009

Thanks for the reply John. I actually went ahead and RSVP'd for your event, hopefully I'll be able to stop worrying now!
Posted by John Huddleston, Seattle & Bellevue, Washington | Jun 24, 2009

Ryan,

It will all be clear after tomorrow's event.

John Huddleston
Huddleston Tax Accountants

CPA tax preparation in Seattle Bellevue Tacoma
Posted by Jason Shindler, Bellevue, Washington | Jul 01, 2009

In case you didn't get your question answered, it may be time to hire an accountant to help you with this. I can recommend someone if you are interested. :)