My husband runs cultural music classes as a small business in the community in the state of California. As of today, he is running the business as a freelancer, and he puts at least 30% of taxes aside every month from the profit. This is the first year for the business making enough profit and the total taxes reached over $1,000.
1) Do you recommend for him to register as a solo proprietor to continue to run this school?
2) Is there any other type of business entity we should choose other than solo proprietorship to run this business? (small business, music school).
3) Our understanding is that he needs to pay quarterly taxes as his total tax is more than $1,000 today. How do we calculate quarterly taxes?
4) The business is still unstable, and there are some months the business expenses exceed the total net profit of the month. In this case, the tax becomes $0? Is it okay to have several months of the business expenses exceeding the total profit of the month?
Thank you for your time and knowledge!
