Do LLCs Pay Quarterly Taxes?

Do LLCs pay quarterly taxes? Yes for most owners. Learn who must pay estimated taxes, how to calculate them, and the April, June, September, and January deadlines.

The short answer for most LLC owners

Do LLCs pay quarterly taxes? For most owners, yes. The LLC itself does not pay income tax, but the owners do, and the IRS wants that tax paid throughout the year. If you expect to owe $1,000 or more in federal tax, you must make estimated tax payments four times a year. The deadlines are April 15, June 15, September 15, and January 15. Missing a payment can trigger an underpayment penalty, even if you settle up at tax time.

Who must pay estimated taxes

You must pay estimated taxes if you expect to owe at least $1,000 in federal tax after subtracting withholding and credits. LLC owners are not employees of their own LLC, so there is no paycheck withholding for most of them. That means you are responsible for sending in the tax yourself. The rule applies to single-member LLC owners, multi-member LLC partners, and LLCs taxed as S corporations where the owner takes a reasonable salary. If you have another job with withholding, that can cover the requirement.

How to calculate your estimated payments

Start with your expected income for the year, then subtract your deductions and credits. Apply the tax rates to find your expected tax, and add self-employment tax, which is 15.3% on your net earnings. Divide the total by four for equal quarterly payments. A simpler method is the safe harbor: pay 100% of last year's tax, or 110% if your income was over $150,000, and you avoid the penalty. Use Form 1040-ES and its worksheet to run the numbers.

Quarterly tax deadlines

The four payment dates are fixed. The first payment covers January through March and is due April 15. The second covers April through May and is due June 15. The third covers June through August and is due September 15. The fourth covers September through December and is due January 15 of the next year. If a deadline falls on a weekend or holiday, the due date moves to the next business day. Mark all four dates on your calendar at the start of the year.

The underpayment penalty

If you do not pay enough during the year, the IRS charges an underpayment penalty on the shortfall. The penalty is based on the amount you underpaid and how long it was unpaid. It applies even if you pay the full balance with your return in April. The safe harbor rule protects you: pay 100% of last year's tax, or 110% if your adjusted gross income was over $150,000, and you owe no penalty. The penalty rate changes each quarter, so it is not a fixed number.

How to pay estimated taxes

You can pay online through the IRS Direct Pay service or the Electronic Federal Tax Payment System, known as EFTPS. You can also pay by phone, by mail with Form 1040-ES vouchers, or through the IRS2Go app. Paying online is fastest and gives you an instant confirmation. You can make one payment per quarter or pay the full year early. Keep your confirmation numbers with your tax records. State estimated taxes are separate and follow your state's own deadlines.

Single-member vs multi-member LLCs

The tax treatment differs by structure. A single-member LLC is a disregarded entity, so the owner reports income on Schedule C and pays estimated tax on their personal return. A multi-member LLC is a partnership, so each member pays estimated tax on their share of income from Schedule K-1. An LLC taxed as an S corporation pays the owner a salary with withholding, and the owner pays estimated tax on the remaining distributions. See our tax guide for the full picture, and our pay yourself guide for salary questions.

Frequently Asked Questions

Do single-member LLCs pay quarterly taxes?

Yes. A single-member LLC owner must make estimated tax payments if they expect to owe $1,000 or more in federal tax. The payments cover income tax and self-employment tax.

What are the quarterly tax deadlines?

The deadlines are April 15, June 15, September 15, and January 15. If a date falls on a weekend or holiday, it moves to the next business day.

How do I calculate estimated tax payments?

Estimate your annual income, subtract deductions, apply the tax rates, and add 15.3% self-employment tax. Divide by four, or use the safe harbor of 100% of last year's tax.

What happens if I miss a quarterly payment?

The IRS charges an underpayment penalty on the shortfall, even if you pay the full balance with your return. The safe harbor rule can protect you from the penalty.

Do I pay quarterly taxes if my LLC makes no money?

No. If you expect no taxable income, you owe no estimated tax. If your income drops mid-year, you can adjust your remaining payments downward.