Tax Center
Guides on LLC taxation, estimated payments, deductions, and deadlines. FormFlow is not a CPA firm — consult a licensed professional for advice specific to your situation.
Rough estimate only — consult a tax professional.
$7,065
Approximate SE tax using 92.35% × 15.3% — actual amount varies.
Simplified estimate — not tax advice.
$14,300
Quarterly payment ≈ $3,575
Single-member LLCs: disregarded entity (Schedule C). Multi-member LLCs: partnership (Form 1065 + K-1). LLCs can elect S-corp (Form 2553) or C-corp taxation. FormFlow provides information only — not tax advice. Consult a CPA for your situation.
Schedule C (Profit or Loss from Business) reports sole proprietorship/disregarded LLC income on your personal 1040. Due with your annual tax return (typically April 15, extensions available).
Partnerships and multi-member LLCs file Form 1065 (informational return) and issue K-1s to members. Due March 15 (or extension). Members report K-1 income on personal returns.
Schedule K-1 reports each member's share of partnership/LLC income, deductions, and credits. You receive K-1s from the LLC and include them on your personal tax return.
LLCs can elect S-corp status via Form 2553 (deadline: 75 days after formation or start of tax year). Potential benefit: reduce self-employment tax on distributions vs. salary. Requires reasonable salary, payroll, and additional compliance. Consult a tax professional.
Self-employment tax (Social Security + Medicare) applies to net LLC earnings for default tax classifications. Rate is approximately 15.3% on net earnings up to the Social Security wage base, plus 2.9% Medicare on excess. Estimated quarterly payments may be required.
If you expect to owe $1,000+ in tax, the IRS generally requires quarterly estimated payments (April 15, June 15, Sept 15, Jan 15). Underpayment penalties may apply. Use IRS Form 1040-ES. State estimated taxes may also apply.
Sales tax applies when you sell taxable goods/services in states where you have nexus (physical or economic presence). Rules vary by state and product type. Register with state revenue departments where required.
If you have W-2 employees, you must withhold income tax, pay FICA, and file payroll returns (Form 941, W-2, W-3). Consider a payroll provider. FormFlow does not provide payroll services directly.
Ordinary and necessary business expenses are generally deductible: office supplies, software, marketing, professional services, insurance, and more. Home office, vehicle, and meals have specific rules. Keep receipts and records.
Track all business expenses with receipts. Common categories: advertising, bank fees, contract labor, insurance, legal/professional, office, rent, utilities, travel, and equipment. FormFlow bookkeeping ($99/mo) helps categorize transactions.
W-2 employees: you withhold taxes and pay employer payroll taxes. 1099 contractors: they handle their own taxes; you may issue 1099-NEC if you pay $600+. Misclassification carries IRS penalties.
Business mileage may be deductible using the IRS standard mileage rate or actual expenses. Keep a contemporaneous log with date, destination, purpose, and miles. Rates change annually — verify current IRS rate.
LLCs can elect C-corp taxation (Form 8832). C-corps pay entity-level tax and may face double taxation on dividends. Sometimes used for venture funding or specific tax planning — consult a CPA.
Form 2553 elects S-corp status for an LLC or corporation. Generally due within 75 days of formation or the start of the tax year. Late election relief may be available. Requires ongoing payroll and reasonable salary.
Issue Form 1099-NEC to contractors paid $600+ in a calendar year for services. Due to recipients by Jan 31; filed with IRS. Keep W-9s on file. Employee vs contractor classification matters — misclassification has penalties.
Home office deduction requires exclusive and regular business use of a portion of your home. Simplified method or actual expense method may apply. Rules differ for employees vs self-employed. Keep records.
Common deadlines: individual/partnership returns (April 15), S-corp/partnership Form 1065 (March 15), quarterly estimated taxes (Apr/Jun/Sep/Jan), payroll deposits (varies). State deadlines differ — check your state revenue department.
Qualified Business Income (QBI) deduction under Section 199A may reduce taxable income for pass-through businesses subject to income limits and business type rules. Complex — consult a tax professional.
Document checklist and filing guidance for LLC owners.