on the Schedule C of the sole proprietor's tax return.
Also, does the sole proprietor have to pay quarterly taxes?
Thanks!!!
The LLC itself does not pay taxes but the owner/member does on the profits through the Schedule C and 1040.
Whether you have to make quarterly estimates depends upon whether or not the LLC is profitable and whether or not you have other withholding to offset the taxes on those profits. If you are going to owe over $1000 at the end of the year, you should be making quarterly estimated payments.
if you are an LLC - you have to file an LLC tax return and pay a big annual fee (I've heard $800), no matter how much money you make or don't make and if you make a profit, of course you have to pay taxes - whatever the tax return tells you
unless you want to pay a penalty at the end of the year, you better make estimated tax payments
Of course you pay taxes, just as you would if you did NOT have the LLC. An LLC gives you some personal liability protection, but doesn't change your taxes.
If you don't pay quarterly and owe over $1000 when you file, you will most likely be penalized.
of course
and why would you go to the expense and bother creating an LLC when you are continuing as a sole proprietor? because LLC behind your name sounds good?
you can get an umbrella policy to protect your assets cheaper