| Wayne,
That is the reason why CPA's are in business!! LOL!!!
The CPA's are there to project your income for the year, and throughout the year whilst they are preparing your books or financial statements, they can strategise to:
1. minimize your tax liability
2. alert you of your potential tax liability
3. help prepare the 1040 estimated tax coupons where you would be making quarterly tax payments.
4. Usually, the CPA will advise you of planning for your tax liability.
5. Usually, the first year of filing, the penalties and interest may not be of material concern.
6. But in the subsequent years this would be of a major concern as profits increase in your LLC.
7. You are right, in that you would not be happy to have to be told in April 17th, 2007 that you owe $10,000+in taxes!!!
Making timely estimated quarterly tax payments to both the IRS and the State would save you substantial underpayment penalties and possible interest.
In short, please consult a nearest CPA as soon as possible, they would be most helpful in the planning phase of your taxes.
Last edited by TaxGuru : 01-28-2007 at 11:47 AM.
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