How much should I save for taxes?
Short answer
25 to 35 percent of net profit, in a separate account, touched only on tax day. Don't trust yourself with it.
The rule
Every profit dollar, before you celebrate it, send 30 percent to a tax savings account. Quarterly estimated payments come out of that. Whatever's left at year-end is a small win, not the whole win.
Why owners fail at this
They see the operating account look healthy, spend or distribute it, then April hits. A separate account that's hard to transfer from removes the temptation.
Ask your version of this question
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Now run it against your numbers.
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