Quarterly Estimated Tax Basics for Small Businesses

Quarterly taxes for businesses
Quarterly taxes often overwhelm small business owners and new entrepreneurs. Learn more about your potential estimated quarterly tax needs and how we can help!

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Taxes become a huge part of life when you start a business, and managing those taxes becomes a full-time job alongside your actual operations. As a new small business owner, a lot changes about the way you pay taxes. Suddenly, you’re in charge of all your tax payments, and estimated quarterly taxes come as a surprise for many new entrepreneurs. At All About Businesses, we’re experts in the tax needs of all types of businesses, including your side hustle or blossoming small business. We’re here to help guide you through the ongoing tax season and assist with all your quarterly estimated tax questions.

How Taxes are Different for Small Businesses & Entrepreneurs

Unlike an employer taking care of your taxes through your chosen withholding, new entrepreneurs are now responsible for handling their own taxes, including income, self-employment, or alternative minimum taxes, as applicable. The IRS asks businesses to account for their earnings four times per year instead of all at once, which can actually benefit your small business if you let it! Instead of one large payment that greatly impacts your bottom line and takes up months of headspace, you can spread out your tax costs with quarterly or even monthly payments that don’t affect your cash flow as much.

Unfortunately, missing a payment or letting your taxes wait until April can result in hefty fines, but with the right software or bookkeeping backup, you’ll be ready for each quarterly tax day. The bookkeeping experts at All About Businesses get you set up with everything you need, ranging from the software you need to keep track of your accounts yourself to a dedicated bookkeeper who handles your numbers.

Do I have to File Quarterly Taxes?

The rules for who should file estimated quarterly taxes depend on your business status, business structure, earnings, and much more. In general, if you’re doing business alone and not classified under a W4 withholding, you owe quarterly taxes. The IRS recommends that freelancers, self-employers or sole proprietors, S-Corp partners, and independent contractors investigate their quarterly tax requirements, as well as corporations that expect to owe more than $500 on their tax return and, in some cases, landlords and investors.

Federal vs. State Quarterly Taxes

Just like with individual taxes, entrepreneurs are responsible for both federal and state taxes. The federal taxes you need to pay also depend on your business structure, as some structures must include self-employment taxes as well as income tax, Social Security, and Medicare tax, while others don’t.

On the state side, business owners also have to pay estimated taxes depending on the states they do business in, including state and local income or franchise taxes, sales and use taxes, gross receipt taxes, and employment taxes if their business has employees. These numbers can get complicated very quickly, especially if you make sales or have employees in multiple states. Depending on the complexity of your needs, a dedicated bookkeeper may be exactly what your business needs to take the tax stress off your shoulders.

Portland Business Taxes

For Portland businesses, taxes are easier with a local bookkeeper and accounting partner. At All About Businesses, we specialize in Portland’s tax details and aim to help Portland-based small and medium-sized businesses thrive! We’ll assist you in filing the City of Portland Business License Taxes, Metro Supportive Housing Services (SHS) Business Income Taxes, Multnomah County Business Income Taxes, and any other business taxes you’re responsible for every April 15th through the City of Portland’s payment portal. In addition, we’ll help you calculate and submit your estimated quarterly taxes due on June 17th, September 16th, and January 15th for calendar year filers. Your dedicated bookkeeper will also inform you of any exemptions you may qualify for!

2024 Quarterly Portland Business Tax Due Dates

QuarterPayment Due Date
1st QuarterApril 15
2nd QuarterJune 15
3rd QuarterSeptember 15
4th QuarterDecember 15

Invest in the Best

Taxes can be difficult and stressful to understand, even at their least complicated. At All About Businesses, we’re business tax experts, so you don’t have to be! With our comprehensive tax knowledge and customizable bookkeeping services to ensure your needs are met, we handle everything you don’t want to so you can get back to running your business. Our experts offer every level of service, whether you’re just getting set up and want the framework and tools to take care of your books yourself, you want us to handle everything, or you just need a quick pre-tax day check-in. Contact us online or give us a call to feel confident in your quarterly estimated tax filings.

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