[rxnarunner]

My friend has taken over his fathers business (auto body). He now has to file quarterly taxes. I went on to the IRS website and just found it to be a little confusing, so I thought id ask you guys how to handle this.

How do you calculate income tax in the state of New Jersey? He is a LLC.

[AtlantaTaxExpert]

Telling us the business is an LLC is NOT enough.

The Limited Liability Company (LLC) is a business entity, not a tax entity. When his father set up the LLC, he chose which tax entity he would use.

The default is sole proprietorship, but he could have also used partnership or S corporation as well.

Further, you are asking about quarterly taxes. You could mean quarterly estimated taxes to pay his personal income tax bill, or the employer taxes (Form 941), under which he would reconcile his monthly deposits of withheld income, Social Security and Medicare taxs for his employees.

BOTTOM LINE: You need to do some research and be a bit more specific with your questions if you want anything approaching a clear and cogent answer.

Of course, the easier solution would be to hire a local tax professional to begin with, rather than try to learn everything about how taxes for a small business work on the fly.