We have all the equipment needed and permits. but how do we know what taxes to pay for? the business is small is only for two people. Until we pick up the business we will hire other help. But for now is just two people. So the only question will be how can we find out what kind of taxes we should be paying?
2006-09-27 03:56:06 · 11 answers · asked by Sugars 3 in Business & Finance ➔ Small Business
attorney or county can help you with that..good luck
2006-09-28 09:42:44 · answer #1 · answered by awhisper 3 · 0⤊ 0⤋
I can't give you any specific information because I'm not from the US. One thing that was really useful is the Revenue and Customs people what you call the IRS had and education department and they sent a guy to this enterprise scheme I was on he explained all the forms and what you had to do. Tax usually differs whether you are sole trader, partnership, or company, etc. I would see if there is an equivalent and if you can go to them to get info.
I would see if there are any enterprise schemes around too. Some of them might be free, especially if you are young. Try and get as much free information as you can.
One thing to make clear for tax, etc (I know it is true for the US as well) ignorance in not an excuse. You sign the books. Whether you use accountants is irrelevant. It is still your books you sign off. The accountant will make you sign a disclaimer. Even if you plan to get an accountant it is worth learning the basics first.
2006-09-27 11:29:57 · answer #2 · answered by dt01pqt_pt 2 · 0⤊ 0⤋
The easiest way is to start a partnership with the other person – LLP, assuming you don’t have a corp. This way you can write off your expenses on your personal income taxes every year.
Example: John has a lawn mowing company and he made 50,000 last year (he has a sole proprietorship). His cost of business was 30,000 (he has the receipts for mowers, repairs, gas, office space, etc) and his income is 20,000. He will have to pay the taxes on that, if he was able to write off the entire 30K in expenses. Remember you will have to pay Social Security, State, and Federal Income taxes. Also expect to pay more taxes than you would at a job because your employer pays some of the taxes for you. If I remember right I think it is something like 35 to 40%.
2006-09-27 11:08:52 · answer #3 · answered by sooners83 4 · 0⤊ 0⤋
I had the same question when my husband and I started our business. I have found out some of the taxes by getting a notice in the mail ~ thankfully they weren't past due! I have called the IRS numerous times and they are always very helpful. Also the state in I live in, Tennessee, has a tax guide for small businesses. Look on your states website to see if they have one, if you can't find it on their call your state Labor and Workforce Development Department they should be able to help you. Good Luck! Also www.irs.gov is a very informative site. My accountant told me some we had to pay, but he also left out some; so I have started checking on my own and it has helped out.
2006-09-27 11:06:37 · answer #4 · answered by GreeneyedCowgirl 5 · 0⤊ 0⤋
If you are talking about payroll taxes, try a payroll company, like ADP. Also, most accountants should know this also. It will depend on wether you are taking a salary, in which case you will need to collect and pay federal and state income taxes (depending on which state you live in) as well as social security taxes.
If you are talking about corporate taxes, use an accountant. You will most likely have to pay something quarterly, but a good accountant will be able to handle all of that for you.
2006-09-27 10:59:11 · answer #5 · answered by Leader Desslok 4 · 0⤊ 0⤋
Don't you have a tax guy and or an attorney ask them they'll have the right answers. We too are opening a business and we have attorney's and what not that do all the worrying for us all we need to do is produce the money.
2006-09-27 10:58:09 · answer #6 · answered by MOVING 5 · 0⤊ 0⤋
Go get a small business tax form...
2006-09-27 11:34:52 · answer #7 · answered by deburleigh 3 · 0⤊ 0⤋
call an accountant or a tax firm and they will be glad to assist you with this kind of information - it varies from state to state and from business to business
best of luck to you and your new business venture
2006-09-27 11:04:23 · answer #8 · answered by Angelina 5 · 0⤊ 0⤋
go to your courthouse in your town and find out. It shouldnt be very hard. they will help you with what you need. or just research it here online. good luck.
2006-09-27 10:58:11 · answer #9 · answered by Metal 4 · 0⤊ 0⤋
talk to a local accounting firm, they will help you with all of that
2006-09-27 10:58:37 · answer #10 · answered by mysticideas 6 · 0⤊ 0⤋