Would it make sense to pay quarterly taxes as a sole proprietor when I don't even know how much I'm going to make for the year yet?
USA, FL. I'm a newly independent hairstylist. I dont have an LLC or anything like that set up yet. I only just recently got my Square set up to take payments, haven't done any transactions yet. Square does not report anything to the IRS until you make $600. I don't have any clients yet so I'm not 100% sure that I will even make that much in the first quarter (I mean hopefully I would but I have no idea). Anyway, correct me if I'm wrong, but being self employed automatically makes me a sole proprietor by default with no paperwork or special requests required? But the IRS won't know this until Square reports that I've earned $600+. So do I need to start paying quarterly taxes now, just to be safe? And by tax time next year I will get it back as a return if it was determined that I didn't actually need to pay anything? Or can I save money by not paying anything for now? I'm sure I will have made $600 by the end of the year, so I guess I would need to start paying quarterly anyway. Should I set up an LLC now to save on taxes? Or wait until I know how successful my business will be? I know the obvious answer would be to talk to a professional to determine the best course of action for my specific situation, which I do plan to do, but any information would be helpful. TIA!