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Am I required to file my taxes quarterly or annually if I'm a sole proprietor with no employees?

I am an LLC, sole proprietor, and I do not have any employees. When doing my 2017 taxes, do I need to file quarterly or is annually ok and legal? So I don't have the IRS banging on my door.

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Assuming you do not meet the few exceptions that are available, then yes you would be required to make quarterly estimates. The good news is that if for whatever reason, you did not make these payments, the penalty is relatively light. The IRS is effectively only charging you interest for the days your payment is late.

It's certainly not without some cost, but it's also not nearly as disastrous as other tax penalties.

This quick reference from the IRS can get you started: https://www.irs.gov/taxtopics/tc306


Hi Jim,

As an LLC, you are required to pay quarterly taxes if you expect to owe more than $1,000 in tax dollars at the end of the year. Even if you have no employees, these are the guidelines for paying quarterly vs. annually. Luckily, for sole proprietors, filing taxes on their own is relatively simple so you can save money here rather than hiring a tax accountant.

Of course, it depends on the complexity of the business. The Business.com team recently published this tax guide Is It Time to Hire a CPA? to help business owners assess the complexity of their business and its books to decide if filing taxes on their own is feasible. If they aren't prepared, the guide lists other options for filing like using a third-party tax service or hiring a tax professional.

Hope this helps as tax day fast approaches!

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