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Originally Posted by CerealKiller
And how do you pay Quatrerly or Yearly. Please give me some advice
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A tax consultant will tell you that as a 1099 tax form, you should put away 15% of overall EARNED monies. That's not including the cost of whatever fees you need inorder to run, operate, function the business. That way, you're at least "covered" on your tax fees.
Typically a "traditional" employer contributes 7.5% into taxes (by law) into a taxable employee. The employee is also taxed the additional 7.5% (to equal that 15% I mentioned earlier) through Social Security, FICA, etc.
But, remember, you are ALLOWED deductions! (Especially if you are claiming business and personal together, which most KJ's do. Also, don't forget dependents are deductible too.) Keep ALL your gas receipts, CDG receipts, equipment cost, upgrades, even the stuff you bought on MTU... tax deductible for maintaining the company. Some people are meticulous about keeping their receipts. Some - not so much. But, the IRS recommends that you keep all records for 7 years, after which discard is okay, unless of course, you're in the middle of an audit or in appeals from the IRS.
If you plan on "breaking even", which is what most people in the industry do, so that they don't have to "out-of-pocket" at the end of the year, make sure you can CYA (cover your "ass"ets).
For those whom have a larger scale business with SEVERAL employees, you may consider trying to file a "S Corp" eligibility with the IRS. Of course, there are a lot of pros and cons between a S corp and a C Corp, so I can't tell you what to do. However, I will suggest you look into it, especially if you have employees (SEVERAL to make it worth while, not just one or two employees) and a spouse or outside investor in the company. You can get a HUGE tax break if you qualify.
I hope that helps you a little, as far as a guideline. But, I will suggest seeking the counsel of a professional for assistance. (I have an EXCELLENT guy I can refer, just shoot me a private message and I'll give you his info. He's out of Colorado, but has high profile clients all over the country. He's awesome!! And he doesn't rake you like H&R Block!)