Hello again,
I understand it may be difficult to determine your net income in the beginning. When you have been in business for a while it will be easier to estimate your income. However, the first year you start a business you have the estimated tax safe harbor to rely on to avoid estimated tax penalties. Here is a link that describes the Estimated Tax Penalty Safe Harbor.
The IRS will not charge you an underpayment penalty if: You pay at least 90% of the tax you owe for the current year, or 100% of the tax you owed for the previous tax year, or. You owe less than $1,000 in tax after subtracting withholdings and credits. Adjusted Gross Income levels are a factor.
