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Estimated Tax Requirements. When you have an LLC, it is generally advisable to make quarterly tax payments. However, the IRS does not require every business to make quarterly tax payments. If you do not expect to owe taxes of $1,000 or more when you file your tax return, you do not have to make quarterly tax payments.If you did not have any tax liability for the previous year and you were a U.S. citizen or resident for the whole year, you can also avoid quarterly tax payments.ave. One of the primary reasons that people use an LLC is the pass-through taxation that it provides. Instead of having to file a business tax return, you can simply file and pay your taxes as personal taxes because all of the LLC's profits are paid out to the LLC owners (members).
State Taxes. If you operate an LLC, youâll typically pay taxes to your state in the same way you do to the IRS â through your individual returns. Some states charge an LLC tax on income earned by that LLC, on top of the membersâ income tax paid.Other states charge an annual LLC fee, unrelated to income, also known as a franchise tax, registration fee, or renewal fee. Itâs a good idea to check the tax and business law in your state before you form an LLC.ncome Taxes for Multi-Member LLCs. If your business has multiple owners, the IRS will treat your business as a partnership, unless you elect to be taxed as a corporation (read this blog from SBA guest blogger Barbara Weltman for more on this).