QUESTION DETAIL
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I just started a business as a sole proprietorship and already have $72,000 of revenue with some expenses. I have no idea how much I owe in taxes and want to make sure I'm doing the right thing right away before this gets any bigger and my possible tax liability gets monumental. I'm based in Florida. Do you have any estimate for my potential tax liability or advice on how to proceed?
ANSWER
Expert Mark Anderson's Answer:
If you are self employed, then you need to make sure that you start making estimated tax payments. You should pay around 15% plus quaterly or you are going to have a very large tax bill. You can obtain the forms on the IRS webpage to estimate and make your payments. You may want to also consider other ways to reduce your taxes like a retirement plan, buying office equipment or incorporating to possibly lower your tax bill. I would suggest that you work with a local CPA or business attorney. I hope this answers your question.
