Educational estimate. State fees change — verify with the Secretary of State.
We apply self-employment tax to 92.35% of profit, then estimate income tax on profit after the deductible half of SE tax, a 20% QBI deduction and the standard deduction.
A default LLC’s profit flows to your personal return and gets hit twice: self-employment tax (15.3% on 92.35% of profit) and ordinary income tax on what’s left. This estimator runs both, and credits you the deductions that soften the blow — half your SE tax, a simplified 20% QBI deduction, and your standard deduction.
It’s a planning estimate, not a return. State income tax, credits and other income all move the real number, so set aside a cushion and confirm with a tax pro.
Self-employment tax plus ordinary income tax on your personal return (default LLC).
A deduction of up to 20% of qualified business income for pass-through owners.
Usually yes — the IRS expects estimated taxes four times a year.
No — it's an estimate.