Quarterly Taxes

I am a brand new SMLLC in Houston, Tx where i work and live, and i am wondering if i have to do a 1040ES next year. I just started so I don't have anything to go off of.

Answer

You do your 1040ES based on last year's 1040.

Remember, your 1040ES is based off your personal income tax return.

Your 1040 is the "home base" for all your taxes. The profit and loss from your single member LLC "flows through" to your 1040, and either increases your taxable income (if you made a profit), or decreases it (if you show a loss).

So, if you were employed at a job last year, and made a salary of $X and reported it on your 1040, use those numbers for your 1040ES this year.

Your single member LLC is just another source of potential income for next year (similar to if you planned on taking on a second job next year).

Assuming you pay the minimum amount based on last year's income, you will not be subject to penalties, if, for example, you make a whole bunch of money next year.

You will of course, have to make up all the difference the following April 15...but you won't be hit with additional penalties for not making the required estimated payments.