How much should I set aside for taxes as a business owner?
Short Answer: A safe starting point is 25%–35% of profit, but your exact number depends on income, state, and entity type.
Taxes are based on profit, not revenue. Many business owners under-save because they don’t separate tax money or don’t track profitability consistently.
Common mistakes:
• Saving based on revenue instead of profit
• Mixing tax money with operating cash
• Underestimating self-employment taxes
What we recommend: Create a separate tax savings account and transfer a set percentage weekly.
Still have questions?
If you’re not sure what applies to your situation, we can help.