Your income taxes will be filed annually on Schedule C which is included as part of your personal tax return. You may need to make quarterly estimated tax payments to cover your income tax and self-employment tax for your sole proprietorship. The information provided by Champ VolvoGirl explains more about the self-employment tax. Whether or not you owe any self-employment tax or additional income tax for your Schedule C depends on whether you have an overall gain or loss from your sole proprietorship. If you have a loss for the year, then no quarterly payments would have been required.
The quarterly payments may be required because the IRS considers the tax system to be a 'pay as you go' system. You can certainly reconcile everything one time per year when you complete your tax returns, but there could be penalties for not making estimated payments throughout the year.
Since you also have a W-2 job where taxes are being withheld throughout the year, you can consider increasing those withholdings in order to cover the taxes for your Schedule C instead of making quarterly payments. As long as the taxes are paid throughout the year and not just when you file your return you can avoid any additional penalties.
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