Quarterly estimated taxes for LLC owners

LLC owners (default LLC taxation or S-Corp) generally owe federal estimated tax payments four times a year. The system exists because employees have W-2 withholding; self-employed and pass-through owners do not.

Quarterly deadlines

• Q1: April 15 (covers Jan-Mar income)
• Q2: June 15 (covers Apr-May income · only 2 months)
• Q3: September 15 (covers Jun-Aug income)
• Q4: January 15 of the following year (covers Sep-Dec income)

How much to pay

Safe harbor rule: pay either (a) 90% of your current-year tax, or (b) 100% of your prior-year tax (110% if AGI > $150K). Whichever is smaller. As long as you pay at least the safe harbor amount, you avoid the underpayment penalty.

For new LLCs with no prior-year baseline, project current-year income and pay 25% of estimated annual tax each quarter. Adjust quarterly as actuals come in.

How to pay

IRS Direct Pay (free, instant) or EFTPS (free, requires enrollment). State estimates depending on your state of residence. Form 1040-ES has worksheets.

Underpayment penalty

The penalty for underpayment is the federal short-term interest rate plus 3% (currently about 8% annualized) applied to the underpaid amount for the period it was underpaid. Not catastrophic on small amounts, but compounds if ignored across multiple quarters.

Need help filing?

Our accountant directory has specialists who handle this exact form across foreign-owned LLCs, S-Corps, and high-volume single-member LLCs.