Hi dharper23,
Thank you for your question. I can certainly understand how it confusing self-employment taxes can be, especially for the first year. Here are some pointers to help clear some of your questions:
First, there are pros and cons to structuring your business as Sole Proprietor, LLC, or S-corporation. Without having detailed knowledge of your business, we are not able to give you the best determination here. To determine the legal structure of your business, it is best to seek advise from your local tax accountant or attorney as each state may have its own nuances with legal structure.
For the EIN, according to IRS, generally, businesses need a new EIN when their ownership or structure has changed. Here is helpful link to determine if you would need to obtain a new EIN: Do You Need a New EIN?
For tax year 2023, the following payment dates apply for avoiding penalties:
1st Quarterly Estimated Tax Payment April 18, 2023
2nd Quarterly Estimated Tax Payment June 15, 2023
3rd Quarterly Estimated Tax Payment September 15, 2023
4th Quarterly Estimated Tax Payment January 15, 2024
We provide a helpful Tax Calculator to assist you with estimating your tax refund or balance due by using this link: Self-Employment Tax Calculators
Once you've calculated your quarterly payments,
- You can submit them online through the Electronic Federal Tax Payment System.
- You can also pay using paper forms supplied by the IRS.
- When you file your annual tax return, you'll pay the balance of taxes that weren't covered by your quarterly payments.
