If I started a sole proprietorship this year... can I pay taxes all at the end of the year?

BAF2 — Tue, 10 Mar 2026 07:00:36 GMT

Hello,

If I started a sole proprietorship, can I wait until I file my personal taxes to pay tax on the earnings, or should I be filing/setting aside taxes ahead of that?

Thanks!

Re: If I started a sole proprietorship this year... can I pay taxes all at the end of the year?

NateTheGrEAt — Wed, 16 Nov 2022 18:41:46 GMT

Hello @BAF2 - thanks for your question!

As a self-employed person, it is always prudent to make quarterly payments of estimated tax. For one, this reduces your tax balance at the end of the year so you don't have a huge bill to pay. Additionally, if you owe more than $1000 on your Federal tax balance when you file your return, there is the possibility of being assessed an underpayment penalty. The IRS system is designed to be "pay as you go" - you are supposed to pay taxes as the income is earned.

I hope this information is helpful!

topic If I started a sole proprietorship this year... can I pay taxes all at the end of the year? in Get your taxes done using TurboTax

If I started a sole proprietorship this year... can I pay taxes all at the end of the year?

Re: If I started a sole proprietorship this year... can I pay taxes all at the end of the year?