Self employed

Hi @BaxterC !

I'm including some links to resources below that you may find useful.

1.  Quarterly estimates are required if you expect to owe over $1,000.  Any penalties and interest will depend on how much you owe and how long you owed it.  

2.  It's best to calculate you estimated profit and pay a percentage based on that.  15.3% is the self-employment tax that covers FICA, which is social security and Medicare.  You will want to add it a percentage for federal income tax.  This varies depending on how much profit you anticipate. 

3.  State sales tax is different than income tax and varies from state to state, so you will want to visit your states department of revenue website for information on calculating and filing.  If you include sales tax you've collected and paid in your gross receipts on your income tax return, you will want to show it as a deductible expense on your Schedule C, line 23.

4.  The LLC resource guide at the end of this post will help you determine additional taxes.  Many states impose a Franchise and Excise tax on LLCs.

5.  Deductions on your personal, individual income tax return will not reduce your company's taxable income, but any overall loss for the year on your schedule C will offset other earned income on your personal return and reduce your income tax.

Here are some resources you may find helpful:

https://turbotax.intuit.com/tax-tips/small-business-taxes/estimated-taxes-how-to-determine-what-to-p...

https://turbotax.intuit.com/personal-taxes/self-employment-taxes/

https://turbotax.intuit.com/tax-tips/small-business-taxes/limited-liability-company-taxes/L5TDDlstC

Hope this helps!

Cindy