If you run an LLC, an S-corp, or you're a sole proprietor, the IRS wants its share as you earn it — not in one lump in April. Wait until then to catch up and they'll penalize you anyway. So you pay quarterly, in estimates. Here's the rough method. Take your net income for the quarter — your bottom-line P&L — and multiply it by your tax rate. Not sure what your rate is? Pull last year's 1040; it's near the top of the first page. It might be 10%, 15%, 20% — whatever yours is, that's your multiplier. It isn't exact, and it isn't meant to be. The goal is to land close, pay a little in each quarter, and stay out of penalty territory. A few wrinkles: in a partnership, split the net income by the number of partners first, then apply the rate. Federal payments go through directpay.irs.gov. And if your state has an income tax — Washington doesn't — you may owe estimates there too. The habit worth building: write your approach down in your business plan so you're not re-figuring it from scratch every quarter.

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