I just started working for myself in the last year, and I had no idea how much income I would bring in when I started (and still would find it difficult to forecast how much I will make by the end of December). I've been setting aside 30% of everything I bring in in a separate bank account, but I haven't filed as an LLC or anything like that. (I'm in California where Sole Proprietors don't need to formerly "form") I have not filed any quarterly taxes so far this year.
Does it make more sense to (A) pay in a lump sum when taxes are due next spring or (B) make my first quarterly tax payment at this deadline.
If I go with (B) how will paying taxes in April go, given that I didn't pay quarterly taxes earlier this year? And how do I estimate given that my income is newly establishing itself? Thanks!
