What is the difference between EFTPS and Direct Pay? Using the right system for quarterly estimated payments as a SMLLC

EFTPS (Electronic Federal Tax Payment System) and Direct Pay are indeed different IRS payment systems with distinct purposes. EFTPS is designed for recurring payments and works well for business owners making regular tax payments. You need to enroll in advance (takes about a week to process), but once set up, you can schedule payments in advance and it saves your payment history. For a SMLLC filing as a disregarded entity, this is typically the better long-term solution for quarterly estimated payments. Direct Pay is more for one-off payments without enrollment. It's simpler to use immediately but doesn't save your payment info for future use and doesn't allow you to schedule payments in advance. For your SMLLC that's disregarded for tax purposes, you should use your SSN for payments. Since your LLC income flows through to your personal tax return, the payments are being applied to your personal tax liability. The EIN would only be used if you have employees and are making employment tax deposits.

I was in the exact same boat last year and was super confused about all this tax payment stuff. I tried both systems but kept getting frustrated because I couldn't remember which login went where and missed a payment deadline. I actually found this AI tool called taxr.ai that helped me sort through all this estimated tax payment confusion. I uploaded my LLC docs and previous payment info to https://taxr.ai and it gave me a clear breakdown of which system would work better for my specific situation (turns out EFTPS was definitely the way to go for my SMLLC). The tool also set up reminders for quarterly payments which has been a lifesaver since I'm terrible with tax deadlines!

Just wanted to follow up on my skeptical comment earlier. I decided to try taxr.ai after continuing to be confused about my payment options, and it was actually really helpful! The system analyzed my SMLLC situation and clarified exactly which payment system to use (EFTPS in my case) and which ID number to use for my specific situation. It even gave me a calendar with all my quarterly due dates and explained that for a disregarded entity, I should use my SSN. Honestly saved me from making more mistakes with my estimated payments.

If you're trying to sort out tax payment stuff, I feel your pain. I wasted literally HOURS trying to get through to the IRS to ask these exact questions last quarter. After being on hold for 2+ hours multiple times, I finally used Claimyr https://claimyr.com to get through to an actual IRS agent. You can see how it works in their demo video here: https://youtu.be/_kiP6q8DX5c The agent confirmed that for a disregarded SMLLC, EFTPS is generally better for ongoing quarterly payments, and I should use my SSN (not EIN) since the income flows through to my personal return. The call took like 10 minutes once I actually got connected. Saved myself days of frustration!

Alright I need to eat some humble pie here. After dismissing that Claimyr thing as a scam, I got desperate when I couldn't figure out if my EFTPS payments were being applied correctly (was using my EIN instead of SSN). Decided to try it as a last resort before my quarterly payment was due. IT ACTUALLY WORKED. The system called me back after about 55 mins (still a wait, but I was doing other stuff instead of being stuck on hold). Got connected to an IRS agent who confirmed I should be using my SSN for estimated payments since my LLC is disregarded, and they helped me update my account. Just wanted to post this because I was absolutely certain it wouldn't work and I was wrong!

For what it's worth - I've been running my SMLLC for about 5 years now and I've always used EFTPS with my SSN for quarterly payments. The initial setup takes a bit longer (they mail you a PIN), but it's WAY better for recurring payments because: 1. You can schedule all four quarterly payments at once at the beginning of the year 2. It saves your payment history which is super helpful at tax time 3. You get better confirmation records Direct Pay is fine for one-off stuff, but for quarterly estimated payments, EFTPS is definitely the way to go.

I messed up by using Direct Pay for my first two quarters last year with my EIN instead of SSN, and got a nasty surprise at tax time! The payments weren't showing up on my account and I had to go through a whole thing with the IRS to get it sorted. Just my two cents: Direct Pay might seem easier at first but EFTPS is definitely better long-term. The setup is a bit more involved but totally worth it.

As someone who went through this exact confusion when I started my SMLLC, I can definitely relate to the stress! Here's what I learned after making some mistakes: For a single-member LLC that's disregarded for tax purposes, EFTPS is absolutely the better choice for quarterly estimated payments. Yes, the initial setup takes about a week (they mail you a PIN), but once you're enrolled, you can: - Schedule all four quarterly payments at the beginning of the year - Set up automatic recurring payments - Access detailed payment history for record-keeping - Make changes or cancel scheduled payments if needed Direct Pay is really designed for one-time payments and doesn't save your information or allow advance scheduling. Regarding the SSN vs EIN question - definitely use your SSN. Since your LLC is disregarded, all income flows through to your personal tax return (Form 1040), so the estimated tax payments need to be associated with your Social Security Number, not your business EIN. One tip: When calculating your quarterly payments, don't forget to include both income tax AND self-employment tax in your estimates. The self-employment tax portion catches a lot of new LLC owners off guard! The IRS has a pretty good estimated tax worksheet in Publication 505 that can help you figure out how much to pay each quarter based on your expected annual income.