Taxes

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Filing Taxes for Your LLC

**Short Answer: Be smart. Don’t be an idiot and try to do your taxes yourself. Hire a professional.**


Video Transcript:

Once you have an LLC, it’s best not to do your taxes yourself. Be smart; hire a professional. Depending on your type of business, you’ll need to register your LLC with the state’s finance department. You will also need to file annual state income taxes, as well as other tax documents, depending on the structure of your business and whether or not you have employees. Calculating your tax obligations can be complicated and, if done improperly, can negatively impact your LLC. We recommend that you get help from a professional once your LLC is formed. Hiring a tax professional will not only help keep your LLC in compliance with the state, but it will also give you an advisor to go to for other business questions. Whether your business turns a profit or loses money, you will still need to file tax documents every year. This is not something to be taken lightly. If you want to run a serious business, and not get into trouble with your state, you should get assistance in filing your taxes properly. A referral from a friend or someone else you trust is usually the best way to find someone to do your taxes. You can also ask co-workers, acquaintances from local clubs or organizations, your neighbors, and other businesspeople. You could also ask your friends on social media for a recommendation. If you can’t get a personal referral, then try doing a search online for ‘accountant’ or ‘certified public accountant’ and look for someone with a strong track record. You should want someone who is a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone that you like personally, as well as professionally. It’s okay to take your time to find the right person. We recommend talking with at least two to three people before making your final decision. In summary, trying to file your taxes yourself, once you have an LLC, is not a good idea. Be smart, and hire a professional.

Depending on your type of business, you will need to register your LLC with the state’s finance department.

You will also need to file annual state income taxes as well as other tax documents depending on the structure of your business and whether or not you have employees.

Calculating your tax obligations can be complicated and if done improperly can negatively impact your LLC.

Hire a Professional

We recommend that you get help from a tax professional once your LLC is formed.

Hiring a tax professional will not only help you keep your LLC in compliance with the state, but it will also give you an advisor to go to for other business questions.

Whether your business turns a profit or loses money, you will still need to file tax documents every year.

This is not something to be taken lightly. If you want to run a serious business and not get into trouble with the state, you should get assistance in filing your taxes properly.

How to Find a Good CPA/Accountant

A referral from a friend or someone else you trust is usually the best way to find someone to do your taxes.

You can also ask co-workers, acquaintances from local clubs or organizations, your neighbors, and other business people.

You could also ask your Twitter, Facebook, LinkedIn or other social media friends and maybe find a trusted name from a friend of a friend.

You would just type into your social media account, “Hey, I just formed an LLC. Anyone know a good accountant?”

If you can’t get a personal referral, then check out our How to Find an Accountant guide, use Thumbtack, or do a search on Yelp for “accountant” or “certified public accountant” and look for someone with a strong track record and good customer reviews.

Look for Compatibility

You should also want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions.

It should be someone you like personally as well as professionally.

It’s okay to take your time to find the right person.

We recommend talking with at least 2-3 people before making your final decision.

You’re now ready to start forming your LLC. Select your state below:

Matt Horwitz
Founder & Educator, LLC University®
Forming an LLC shouldn't be so complicated. Our step-by-step guide will make the process a breeze – and no complex legal jargon! LLC University® teaches people how to form an LLC for free in all 50 states. We hope you find our free guides and resources helpful in your business journey.
Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

5 Comments

  1. Sarah July 11, 2018

    Thanks for such a wonderful resource!! Your well-written articles have truly put my fears to rest. I can do this small business thing!

    reply
    • Matt Horwitz August 12, 2018

      Fantastic! Thanks for the awesome comment Sarah! So happy to hear that :)

      reply
  2. Aron February 20, 2019

    Hi Matt,

    If I set up an LLC, will I have to start paying taxes immediately, even if I start my business activity later?

    I started to build an ecommerce business, I’m going to launch it around this November. Is it better to set up my LLC right before launching?

    Let’s say I set up an LLC and for some reason, I need to close it up, before it does any activity. Could I do this any time?

    Thank you for your kind help in advance!

    reply
    • Matt Horwitz February 21, 2019

      Hi Aron, since an LLC is a pass-through tax entity, you only have to file federal taxes if your LLC has income or you want to write off expenses. So no, you don’t have to file taxes federally right away simply because you formed the LLC. Furthermore, taxes are due in April, after the close of the year. Depending on the state where the LLC is formed though, there may be a state-level filing though. It’s best to work with an accountant regarding the details. As for the timing of when to open the LLC, that is up to you. And yes, you can file an LLC dissolution at any time. Hope that helps.

      reply
      • Aron February 22, 2019

        Matt,

        Thank you!

        reply

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