If you’ve ever filed your personal income taxes, you know it can be a headache. It’s often more complex when you run a business. Here’s a quick breakdown of state/federal taxes for LLCs:
You must file a return each tax year and get an EIN.
Include business profits you received on a personal tax return.
People taxed as C corporations must file business tax returns every year and include business income on the personal tax return (federal and state).
Make quarterly estimated tax payments to avoid a penalty at tax time.
Withhold appropriate Social Security, Medicare, and federal taxes from employee paychecks.
Get a sales tax license to collect sales tax from sold items.
Create the Wage Withholding Account at the Colorado Department of Revenue if you’ve got employees