Employees have taxes withheld automatically. Business owners do not, which means setting money aside and paying the government four times a year.
Quarterly estimates
If you expect to owe meaningful tax for the year, the IRS expects payments across four deadlines rather than one lump sum. Many states run a parallel schedule.
A common approach is to move 25–30% of every payment into a separate tax account the day it arrives.
Deductions and records
Ordinary and necessary business expenses reduce taxable income — software, professional services, business travel, and a qualifying home office among them.
Keep digital receipts, a mileage log, and a clean bookkeeping system. The value of a deduction disappears if you cannot substantiate it.