If I am a sole propriotor and I run my business out of my home. How can I figure out how much taxes I will have to pay (or which tax bracket)? I am trying to skip hiring an accountant but it may be enevitable. Also, If I only deal in cash, how will anyone know how much sales I actually do? I have a business bank account set up. Do they use that at the end of the year? The account is setup with my SS number as the Tax ID number. So does this mean I will file everything together? Any help is appreciated..
2006-06-16 08:18:23 · 5 answers · asked by Anonymous in Business & Finance ➔ Small Business
My husband and I are opening our own business also and have heard some horror stories about friends of ours who tried to do their accounting themselves and ended up owing the IRS thousands. I think it's worth it (especially for peace of mind) to go ahead and hire an accountant to do your taxes and who will guide you with the rest of your accounting also. You can shop around and get quotes from different accountants and also ask other business owners in your area who they trust. :)
2006-06-16 08:33:52 · answer #1 · answered by Dreamy 1 · 2⤊ 0⤋
This information is available free from the government. They have a pamphlet listing your tax bracket according to income. In fact, they have a pamphlet for just about everything, especially things like this. The only way there could be a complication in a business dealing only in cash would be an internal audit. And they would take your business bank account as proof of your income. I'm not sure what you mean by filing everything together.
2006-06-16 08:30:12 · answer #2 · answered by Grandma Poch 1 · 0⤊ 0⤋
Call a local college and ask if they have any accounting students who would like a very part-time job. Like an Internship. They could just give you 4 hours a month or something, for an agreed upon price. Maybe you could even barter something you sell in your business in exchange for 4 hours of his time. I just see my tax man at the end of every year to do my taxes but I can call him for free advice all year long even though he only gets that one check each year for doing my taxes. Good Luck.
2006-06-16 08:25:30 · answer #3 · answered by cherryred64gto 4 · 0⤊ 0⤋
best to check with irs.gov, they have many choices to make concerning your income and tax bracket
2006-06-16 08:38:50 · answer #4 · answered by bluebell1us 3 · 0⤊ 0⤋
Another thing you could do is some hard core reading and research at http://www.irs.gov
2006-06-16 08:27:17 · answer #5 · answered by selene1212 5 · 0⤊ 0⤋