Hi, @asukam55 , thanks for the questions!
1) One does not "register" as a sole proprietor other than by filing a tax return with self-employment income. It is the "default".
2) We are not allowed to advise on business entities, as it is outside of our scope. Sole proprietorship is certainly the simplest. If you are considering other entities, then I would advise you to consult with a local tax accountant or attorney who advises on such matters.
3) The bare minimum you should pay in quarterly estimated tax payments is 100% of your 2022 tax liability from Line 24 of your Form 1040. If you make over $75,000 as a single filer, or $150,000 if married filing jointly, in self-employment income, then you should pay 110% of that number. You would pay this in four quarterly payments of 25% (or 27.5%) each. This will allow you to avoid an underpayment penalty. Also, don't forget to count any other tax payments you make. For example, if you have tax withheld from a job. This will reduce the amount you need to pay.
4) If expenses exceed income, then there is no taxable income. This is quite normal for a new business. One only needs to be concerned with the "hobby rules" if one operates at a loss for several years in a row.
Hope this helps, please let me know if not!
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