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Right, the way i explained it was a little off, and your explanation is much more accurate. But let's live in moment for a second. There are loads of ways around this. If you are a sole proprietor Of am LLC, it's a flow through entity so it will come through as a schedule K to your personal tax return. You should be estimating you're annual revenue and sending tax in accordingly. But you can also lower that immensely by setting up retirement accounts that will/can eat a lot of your profits and can use that in the calculations too. You can have someone on a 1099. And estimate their annual costs. You can also use season to base gross income. Let's say you'landscaper.

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