HELP WITH TAXES for online marketing agency (self-employed) **

[John2020]

Hello, so I am ready to start my social media marketing agency,

I just have one important question before I start taking clients, and it has to do with taxes.

I will be operating as a sole proprietorship, working as a self-employed individual. This will only be for the first few year or so as I scale my agency.

My one big question is, how do I go about taxes in this case?
I just want to make sure I know everything I should know so I don't make this kind of mistake.

**(It is important to note for tax purposes I am from the United States)**
Any advice, or anything I need to know is much appreciated! Thanks

 

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[ijack]

just wanted to say thanks for everything you do on this page

 

[RicardoGrande]

Hello, so I am ready to start my social media marketing agency,

I just have one important question before I start taking clients, and it has to do with taxes.

I will be operating as a sole proprietorship, working as a self-employed individual. This will only be for the first few year or so as I scale my agency.

My one big question is, how do I go about taxes in this case?
I just want to make sure I know everything I should know so I don't make this kind of mistake.

**(It is important to note for tax purposes I am from the United States)**
Any advice, or anything I need to know is much appreciated! Thanks

There's quite a few youtube videos you can check out, most common advice for u.s. based freelancers is to save 23-25% of every dollar you make for when tax season rolls around.

 

[Mark98]

There's quite a few youtube videos you can check out, most common advice for u.s. based freelancers is to save 23-25% of every dollar you make for when tax season rolls around.

Hi I currently work as a bookkeeper. When a person becomes self-employed their overall withholding taxes that they will pay will come out to 15.3% of their wages. 12.4% for social security and 2.9% for Medicare. When you are a W-2 employee, your employer pays half (6.75%) and you are responsible for paying the other half (6.75%). So to cover these taxes, and income taxes and if you have to pay state, saving 20% - 25% should be perfect for you.

 

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[RicardoGrande]

I am a client of turbotax.

If you're in the u.s. and make less than about 60k/yr, freetaxusa has free filing and has worked well for me for about 4 years now.