1099 life: quarterly taxes, an entity, and paying yourself like a business

Nobody withholds taxes on your commissions. That's the whole story of the first April for most new producers.

Not tax advice; talk to an accountant who works with commissioned reps. But here's the shape of what they'll tell you.

• Set aside a percentage of every commission check in a separate account for taxes, and don't touch it. The right percentage depends on your situation; the discipline doesn't.
• Quarterly estimated payments exist because the IRS wants the money through the year. Missing them costs penalties on top of the tax.
• Track expenses from day one: leads, phone, mileage, E&O, licenses, CE, software, the home office if it qualifies. Receipts in one place, not in a shoebox.
• An entity can make sense once income is steady, for how you pay yourself and for liability. It also adds payroll, filings and cost. Get the advice before you form it, not after.
• Chargebacks reduce income; keep the statements, because the year-end 1099 should reflect them.
• Renewals are income too; plan for the year they start.

The agents who stay in this business treat it as a business by month three. What's the one financial habit that saved you?