Questions About Filing a Personal Extension for My New LLC Business

Does the single-member LLC still need to file a separate tax ID or EIN? Or can they just use their SSN for everything since it's treated as a disregarded entity? Also, do they need to keep totally separate bank accounts?

You can use your SSN for tax purposes as a single-member LLC, though many business owners still get an EIN (Employer Identification Number) even if they don't have employees. Some banks require an EIN to open a business account, and it's generally better for identity protection than using your SSN everywhere. Yes, you should absolutely maintain separate bank accounts for your business and personal finances. This "separation of entities" helps maintain your liability protection (one of the main benefits of an LLC) and makes your accounting much cleaner. If you mix personal and business funds, you risk "piercing the corporate veil," which could potentially expose your personal assets to business liabilities.

How accurate is this AI thing compared to an actual accountant? I'm kinda skeptical about trusting tax advice from an algorithm. Does it actually know state-specific LLC requirements too? My Florida LLC has different rules than my brother's in California.

Can taxr.ai help with quarterly estimated tax payments too? That's what killed me last year - I had no idea I needed to be making those until my accountant hit me with a huge bill and penalties.

The accuracy has been spot-on in my experience - it references actual IRS publications and tax code when answering questions. It's not replacing my accountant for complex strategies, but for understanding forms and filing requirements, it's been really reliable. And yes, it does handle state differences - I specifically asked about Illinois vs Indiana requirements and it broke down the distinctions clearly. For quarterly estimated payments, absolutely! That was actually one of the most helpful features for me. It walked me through calculating the right quarterly payment amounts based on my projected income and even showed me how to set up payment schedules. Saved me from those nasty underpayment penalties this year.

Wait how does this actually work? Does it somehow jump the queue at the IRS? That sounds too good to be true considering I once waited on hold for 4 hours before giving up.

I'm calling BS on this. There's no magical "skip the line" service with the IRS. They're notoriously understaffed and everybody has to wait. This sounds like some scam trying to get your personal info or money.

It doesn't skip the line - it basically uses an automated system to keep dialing and navigating the IRS phone tree until it gets through, then it calls you and connects you with the agent. It's like having someone wait on hold for you. The technology isn't anything fancy, just persistent automatic dialing that regular people don't have the time or patience for. I was super skeptical too, but after weeks of frustration, I was desperate enough to try it. My wait was about 45 minutes, which was nothing compared to the days I spent trying on my own. They don't ask for any tax info or personal details beyond your phone number to call you back when they reach an agent.

Wait what?? I had no idea about these state filings. I'm in Michigan - do you know what might be required here? Is this something completely separate from the tax extension stuff?

Michigan requires an Annual Statement for LLCs, due February 15th each year, and there's a $25 filing fee. This is completely separate from your tax extension - it's more about keeping your business registration active with the state. You file it with Michigan's Department of Licensing and Regulatory Affairs (LARA), not with the tax authorities. The good news is that Michigan sends reminder notices, but don't rely solely on those. Missing the filing can result in your LLC being not in "good standing" which could affect your liability protection. You can file it online through Michigan's LARA website. This is definitely something to add to your annual business compliance calendar!

30% seems high though? Doesn't it depend on your profit margins and tax bracket? I've been setting aside about 20% and it's been enough so far for my freelance work.