Hello aaugustin,
Thank you for participating in the Ask the Experts event. As to your question, congratulations on your new business and glad to hear it is growing!
The most important thing you can do as a business owner is to keep accurate records of all your income and expenses. If you do that on a regular basis (monthly at a minimum), you will be able to see whether you are making or losing money. For the most part, your taxable income will equal your net income from your profit and loss statement. However, there will be some adjustments to that number depending on the number of assets you may have, i.e., do you own a building and have a lot of equipment or are you a mobile massage therapist and only visit clients?
Either way, until you have a better understanding of your numbers and how they translate into your tax return, I would plan to pay 25-30% of your net income for taxes. Right off the bat you will have a 15.3% self-employment tax. That leaves 10-15% for your ordinary federal income taxes and state taxes. You will be able to deduct half of your self-employment tax and 20% of your net income for the Qualified Business Income Deduction (at least through 2025), in addition to your standard or itemized deductions to come up with your taxable income, but the self-employment tax is calculated purely on your net income.
Here is an excellent resource from the IRS for more information: Estimated Taxes
(You will need to search your own State's website for how to pay estimated taxes with them.)
I hope that helps.
