I'm starting my own mechanic shop/garage and I'm really not sure had to do the taxes.?

Question

I was a mechanic for 6 years with very little pay. i started other job making more money, but i'm wanting to start my own garage on the side. I'm not sure how to do the tax stuff. I know that the tax rate here in Ohio is 6.5%. So i guess what i'm wanting to know is how can i have my garage legel.

Answer 1

The 6.5% tax rate you're talking about sounds like sales tax, not income tax. And you'll also owe 15.3% for social security, and whatever the state tax is.

Your best bet is probably to contact a CPA before you start your business. His/her advice will probably save you more than the fee. They'll advise you on what you can deduct, what records you need to keep, and what and when you need to file (probably quarterly, both for fed and Ohio.) Also what you need to do to collect and remit sales tax. If you wait to find all this out until you're ready to file your taxes, you could be in a real mess.

Also check into what kind of insurance you should carry.

Good luck with your new business.

Answer 2

nicely the inland gross sales have help packs for commencing a sparkling corporation. you regularly ought to earn aprox. £4000 formerly you need to start paying tax and to develop into vat registered(get the tax back on many products, hire of van, petrol/diesel, and so on) you need to earn over £10,000-i think of that sum is stable?? inbiz additionally help you out an installation and so on. yet while i develop into you identity take 10% off your earnings each and each week so which you will positioned that away in a financial employer account or isa for once you do ought to start paying tax.

Answer 3

Get an accountant or a bookkeeper and they will help you get legal. Shop around and find one that will mentor (help) you through the whole process. It is going to be your cheapest way to get through all of the legal mumbo jumbo.