Confused about sole proprietorship taxes after starting your first business? In this video, CPA Logan Allec explains how taxes work for a new sole proprietor—including how to report your business income, make quarterly estimated tax payments, and keep track of your business expenses.

You’ll learn:

• Whether you need to notify the IRS that you are a sole proprietor
  
  
• How business income and expenses are reported on Schedule C
  
  
• When quarterly estimated tax payments are generally due
  
  
• How to make an estimated tax payment to the IRS
  
  
• Why you may also need to make state estimated tax payments
  
  
• Whether a spreadsheet is enough for your bookkeeping
  
  
• Why opening a separate business bank account can make tax preparation much easier
  
  
• How bookkeeping software such as QuickBooks can help categorize transactions
  
  
• How Schedule C income eventually flows onto your Form 1040
  
  
• Why in-home daycare providers should understand the special home-office deduction rules
  
  

Sole proprietorship taxes can feel overwhelming when you have always worked as a W-2 employee. The key is to separate your business and personal transactions, maintain accurate records, understand your estimated tax obligations, and prepare for Schedule C at tax time.

The business bank account Logan uses: https://loganallec.com/business-bank-...

This video is for general educational purposes and is not individualized tax advice.

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