Registered a Sole Prop Business License in May 2024

[joshalee]

If I just established my business this year and formed a Sole Prop and got a business license, do I need to make quarterly tax payments in year one?  I would assume after I file taxes in 2025 (for 2024) then I would start quarterly tax payments.

[dev145]

Yes, you should make an estimated payments even if it is your first year in business especially if you will have a net profit. If you do not make estimated payments, you might have large balance due when you file the return and also might have a penalty for not paying enough. See below link for who must pay estimated taxes and how to calculate from IRS. 

Estimated taxes | Internal Revenue Service (irs.gov)