I would like to know what is the percentage that I need to start saving to pay taxes on a internet business?

vginagc asked:


I open an internet business in CA, I got an ien # because the bank requested me to have it to open an account with a business name. I had not make any money yet. but when I do, how much percentage do I have to save to not touch that money so I have it when it is time to pay taxes?

internet business

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2 Responses to “I would like to know what is the percentage that I need to start saving to pay taxes on a internet business?”

  1. HRBlock Shannon C says:

    Internet Business Startup

    It’s hard to give a perfect answer…..Some of it can depend on how much income you have from all sources, internet business and anywhere else.

    For your self-employment taxes, you will need to set aside up to 15.3%.

    For your federal income taxes you will need to set aside an amount based on your estimated tax bracket – anywhere from 10 to 35%.

    For your state income taxes you will need to set aside up to 9.3%.

    I have talked to self-employed persons who try to keep roughly 30-35% aside for taxes.

    I would always recommend reviewing the situation throughout the year, to see how much money you are making and spending and see what is likely to be the taxable amount. So a monthly or quarterly review to “estimate” what your tax situation is looking like, and plan and adjust accordingly.

    Shannon C.

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