2022 was the last year I filed. Only income made since was from "annual" dividends, maybe 1-2k per year....otherwise have just lived off savings. I plan on selling some stock this year, around 150k worth...should i just file 2026 taxes and move along or do I really need to back track those few years and file for the 1-2k per year?
SOLVED
I’ve been the creative director at a boutique marketing agency for five years. Three years ago, instead of a salary bump, the founder offered me a 15% ownership stake in the LLC. At the time, it felt like a huge win.
Fast forward to this year: in January, we landed two massive enterprise clients. The agency’s revenue has absolutely skyrocketed this spring. It should be a great thing, but the founder is choosing to keep 100% of the cash inside the business to hire more staff and sign a lease on a much larger office space. He hasn't paid out any profit dividends to the owners.
Yesterday, the company’s accountant sent me an email reminding me that Q2 estimated taxes are due on June 15th. They attached a worksheet showing that because the LLC is a "pass-through entity," I am personally responsible for the taxes on my 15% share of the massive Q1/Q2 paper profit. My estimated tax voucher for next week is roughly $14,000.
I literally do not have $14,000 in my personal savings. I am paying taxes out of my standard W-2 salary on money the company earned, but that the founder is hoarding to fund his own expansion plans.
When I brought this up to my boss, he just shrugged and said, "That's the reality of being a business owner."
Is this actually how equity works? Am I legally forced to drain my personal bank account to pay the IRS for company profits I haven't received a single dime of? Do I have any right to demand he releases enough cash to at least cover the tax bill?
Update:
Thanks everyone for the reality check. I just got off the phone with a CPA firm that specializes in agency structures, and they are reviewing the Operating Agreement and my K-1/W-2 setup now. Glad I didn't just blindly pay that $14k voucher. Locking the thread to focus on getting this sorted before the 15th, really appreciate the help!
Hello. I recently started a new job as a personal care aide caring for a family member. We live in the same home and I do not have a separate residence so it is eligible for federal income tax exclusion. Each year I typically do my own taxes online and we usually claim EIC and Child Tax Credits. This would be my sole source of income. Does this affect how I would do taxes when tax season rolls around? Is there anything I need to keep track of?
