Kangaroo ERP USA Blog

By default, your LLC's taxes are NOT filed separately from your personal return — profits flow through to Schedule C (single-member) or Form 1065/K-1 (multi-member). True separate filing only happens if you elect C-corp treatment with Form 8832, or S-corp treatment with Form 2553. Either way, keep separate business books from day one.

Single-member LLCs and LLCs taxed as C-corps file by April 15, 2026. Multi-member LLCs (Form 1065) and LLCs taxed as S-corps file by March 16, 2026. Extensions (Form 7004 or 4868) add six months to file, but any tax owed is still due on the original date — late payment triggers interest and penalties immediately.

LLC tax preparation software like TaxAct Business or H&R Block Premium & Business lets you file Form 1065 or Schedule C yourself for roughly $100-$250 a year instead of the $800-$2,500+ a CPA typically charges. You save money and get speed, but lose audit representation and year-round tax strategy — and the software still needs clean books to work.

A 1099 self-employed worker pays the full 15.3% self-employment tax on net earnings, while a W-2 employee pays only 7.65%, with the employer matching the rest. For an LLC owner, hiring that same person as a W-2 employee adds payroll tax matching and unemployment insurance on top of the salary — costs a 1099 contract doesn't carry.

To calculate your estimated quarterly tax, multiply net self-employment income by 92.35%, apply the 15.3% self-employment tax plus your income tax bracket, then divide by four. Pay by April 15, June 15, September 15, 2026, and January 15, 2027 — unless you file your return and pay in full by February 1, 2027 (the next business day, since January 31, 2027 falls on a Sunday).

Electing S-corp status swaps the 15.3% self-employment tax on all profit for payroll taxes on just a reasonable salary, with distributions exempt. On $150,000 net profit with a $70,000 salary, employment taxes drop from about $21,194 to $10,710 — but $2,000-$4,000 in added payroll and compliance costs typically leave you ahead by roughly $7,000-$8,000 a year.

The best tax software for an LLC taxed as an S-corp handles Form 1120-S and Schedule K-1 generation, tracks reasonable salary through real payroll, and keeps books accurate all year. TurboTax and TaxAct file the return only; Kangaroo ERP's Company plan adds the bookkeeping and payroll behind it.