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I am a contractor, and want to form an LLC and select being treated as S corp (by 2553 form).

I read online about federal quarterly payroll tax using form 1040 ES, but this article suggested to use form 941 for the quarterly payroll tax. So I am confused: Do I need to file both 1040 ES and also 941 at the same time, each quarter?

Or I only need to choose one of them (probably 1040 ES because I see most people are using 1040 ES)?

  • Looks like dupe of money.stackexchange.com/questions/63212/… and the answer is: both -- although 941 is calendar quarters Apr. July Oct. Jan. while 1040ES is Apr. June Sep. Jan. Also see irs.gov/businesses/small-businesses-self-employed/… – dave_thompson_085 Jan 3 '18 at 10:58
  • I am confused by 1120S and 1040 ES. For single member LLC elected to be treated as S corp, which form should I use to estimate the quarterly tax? – ziweiguan Jan 4 '18 at 5:39
  • The corp pays and reports on 941 income-tax withholding and FICA taxes on your compensation, which must be 'reasonable'. These are exact, not estimated, but they are incremental. You estimate your income tax liability minus the amount withheld&paid by the corp -- including for nonwage distributions and non-work income -- and pay that with 1040ES (if you pay online you don't need the actual form but you still compute the estimate). After the end of the year the corp files 1120S (with K-1) and you file 1040; end of year is not quarterly. This is all in the pages I linked. – dave_thompson_085 Jan 5 '18 at 7:11

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