Hi @Hairbywhitneyjo. Congratulations on realizing that you need to be thinking about this and doing it. So many new entrepreneurs forget this and then get smacked with surprise tax bills that are hard for them to pay. Unfortunately, the question of “how much” is not one we can answer here. There are so many factors — how your business is organized, how much you project you’ll generate in taxable income this year, even where you are located (which might have state/local taxes besides the federal taxes you’ll owe).
You need to schedule a meeting with an accountant, or whoever is going to prepare your tax returns for you, and they will guide you to determining a starting number. They’ll have forms and guidelines to aid this process. Then, after you file your taxes each year, you’ll adjust your new year’s quarterly payments based upon your actual returns.
I’ll mention that if you don’t have an accountant or you are concerned about the cost of one you should go to www.score.org and search for a chapter near you. SCORE provides new businesses with low-cost or free services to help them successfully launch their business and keep it on track.
Best,
Chip A.
Square Expert & Innovator and member of the Square Champions group. (But NOT a Square employee, just a seller like you)
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