Hello Bryanlafaurie,
I'm glad to hear that you are doing well with your new business, way to go!
From reading your post, it sounds to me as if you know what you are doing! I would suggest looking into getting an accounting application such as Quickbooks. https://quickbooks.intuit.com/ That way you can enter in your income and expenses and have the totals and receipts taken care of.
It is OK if you have not filed for an LLC yet. You may want to talk to a local financial adviser or lawyer about whether or not an LLC is the right fit for you. An LLC may provide you with some protections in case something bad happens.
You asked "Am I wrong for not having paid taxes as of yet?". You stated that you had saved some money for taxes, way to go!
I would suggest that you do make estimated taxes each quarter. The IRS is a "pay as you go" type of entity. That means that you should be paying taxes on your earned income each quarter.
According to the IRS, "If a taxpayer doesn’t pay enough or pays late, a penalty may apply."
You can set up a direct pay with your bank account with the IRS by using this website: https://www.irs.gov/payments/direct-pay
When you complete your tax return with TurboTax, there will be a question and a place for you to enter in the date and amount paid when filing your estimated tax payments. You will want to keep records of your payments.
You also asked "because I own basically a cash business, am I more likely to get audited?" Well, the good news is that in the unlikely event that you were audited by the IRS, you are doing the right thing by keeping records of your income and expenses. Using a tool such as Quickbooks would help you to show your records with the IRS.
No one can predict if the IRS were to audit you. However, keeping records and making timely estimated tax payments are a good start to protecting yourself. You may also want to use our Max Defend product, offered during checkout when you file your return with TurboTax, for some extra help in case you were audited.
Best of luck!
Thanks,
Sean
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