New LLC

[mhoffman44]

If I have a brand new LLC established, what do I need to do for my taxes if I have nothing to report yet for 2023?

[Sean Enrolled Agent]

Hello mhoffman44, 
Congratulations on that new LLC.

You will want to make sure that you are keeping a book of records, your accounting books or ledger. You may want to do some research about Quickbooks to help you keep your accounting records. Quickbooks is a great application that helps business owners keep track of the most common tasks that occur with bookkeeping. 

You will want to keep track of any type of start up expenses that you occur. 
For more information, feel free to review our TurboTax Startup Business Tax Tips website at: https://turbotax.intuit.com/tax-tips/small-business-taxes/startup-business-tax-tips/L7SOyYMzr

Even if your new business isn't exactly up and running  when you incur startup expenses, you can still deduct the expenses during your first year of business.

Thanks,
Sean

[shirleyh88]

Hello mhoffman44,

Thank you for your question. I am happy to assist you.

Congratulations on establishing your brand-new LLC. As an LLC (sole proprietor), you have the responsibility to prepare and file Schedule C with your Form 1040 to the IRS to show whether your business was profitable or had a deductible loss during the taxable year. You would need to keep good records for both your income and expenses.

I have attached a link on “Reporting Self-Employment Business Income and Deductions for your reference below:

https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income...

In addition, as a self-employed individual, you must pay taxes as you earn income throughout the year. You do so by paying estimated taxes to the IRS on a quarterly basis. Estimated tax is used to pay for both income tax and other taxes such as self-employment tax and alternative minimum tax.

I have attached an article from the IRS regarding Estimated Taxes. This article provides guidance on how to calculate estimated taxes, when to pay and where to pay for these taxes.

https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes

Please let me know if this answers your questions, or if I can be of further assistance.

Thank you!

Shirleyh88