HACKER Q&A
📣 doctoboggan

Resources/Advice on filing taxes as a Sole Proprietor?


So, like many on this website I have decided to strike out on my own. Currently I am selling custom 3D printed jewelry on my website and on Etsy. It's been a great experience learning about the technology and doing direct sales, but the taxman must get his money. I was hoping to tap the wisdom of HN to see what others do.

Is it best to just hire an accountant, use software like turbotax or credit karma, or just do it myself?

I understand that I have to file 4 times a year, so would turbotax/creditkarma handle that as well?

Do I have to file different forms or at different times for income tax vs sales tax?

Any other advice or pointers on good resources for reading would be very much appreciated.

  👤 jqpabc123 Accepted Answer ✓
You only have to "file" a federal tax return once a year.

What you are obligated to do is pay estimated taxes due at least quarterly. If you don't do this, you will have to pay a penalty when you "file" at the end of the year.

But, since current interest rates are near zero, the penalty is usually small and the IRS will even figure it for you and left you know the amount you owe.

My advice, forget the accountant, do your own taxes, pay everything due at that time (except the penalty) and let the IRS work the rest out and get back to you as they see fit.

Sales tax is a different animal that varies based on where you live.

👤 Spooky23
I’d consider looking for referrals for an accountant in your jurisdiction for the first year or two. Income tax is pretty straightforward. Other things like sales tax, worker’s compensation, etc can all get complicated fast...