For now, my partner and I have been despoiting money into our business account because we have just been getting everything situated and have not recieved any money for any services yet because we didn't have any clients in 2006. We did, however, purchase things to help get teh business going. Do I have to pay taxes if I never paid anyone anything? What form would I use? Thank you so much!
2007-01-15 04:19:18 · 10 answers · asked by Miss Jesse 2 in Business & Finance ➔ Taxes ➔ United States
OK, I'm kinda in the same boat........so here is what I've learned. First, HAVE YOU PAID YOURSELF??? When you are self employed you are supposed to pay quarterly taxes to the IRS, based on what you think you will owe for the year. That way, you do not have a huge amount to pay in April, (or whenever you file). Second, DO NOT GO TO H&R, OR ANY OF THOSE PLACES, EVER!!! Do yourself a favor and hire a TAX ATTORNEY!!!!!!!!!!!!!!!!! Mostly because you have gone the quarter without sending your "Guesstimate" tax with-holdings to the government. He/She will be able to save your hinny, because, unfortunately for me (and you),"I didn't know" is not a defense we can use is court. OOPS!
One more thing, any major start up equipment that you have purchased for your business should be put to use in a "slow and low"deduction program. So, let's say you spent $20,000 on ACME product, over the next five years take a $4,000 deduction instead of a 1 time deal for a single tax year. Just one more way a qualified TAX ATTORNEY will save your butt.
Good luck with the business, btw, depending on where you live, going to h&r or somewhere like that isn't that much cheaper than paying a retainer fee to an attorney that is going to be SO much more beneficial to you, your partner and your business.
2007-01-15 05:10:14 · answer #1 · answered by Mandy J 2 · 1⤊ 0⤋
You still need to file taxes. The form you use depends on the type of business you have (c corporation, etc.) Make sure you have all of your receipts together before starting your forms.
If your partner has never filed business taxes before either, you might want to invest in a tax preparer for this year so you can have something to use as a guide for next year. I used to do the company taxes for my old company by hand, but the last 2 years I used Turbo Tax and it went much faster.
2007-01-15 04:27:33 · answer #2 · answered by c21bucks 2 · 2⤊ 0⤋
Pay a little more, and get an accountant. Do not use H & R Block, as someone else suggested. You must file a return for every year you are in business, but that doesn't mean you will have to pay any taxes. Good luck with your new business.
2007-01-15 04:30:20 · answer #3 · answered by Momma Jo 6 · 1⤊ 0⤋
You should get a professional to file your business taxes THIS year. You won't have to pay anything, but it will lay the basis for a lot of tax breaks later. Your purchases can be used to defray some taxes from future years....see an accountant skilled in these matters. It will be well worth the money.
2007-01-15 04:25:37 · answer #4 · answered by Anonymous · 1⤊ 0⤋
In UK you don't have to pay for at least 18 months after trading ,tax man allows you this time to sort your self out
and organise your accounts ,after 18 month you present your accounts to the inland revenue (tax man )and it will be another month or so before you make payment if your accounts show a profit or if you are libel to pay ..,
even then people don't have the money to pay all ,so you can make arrangements to pay over a certain period of time ,good luck,,
But if you are talking PAYE pay as you earn ,for your staff,that's another mater ,staffs paye and graduated pension are payable monthly ,,if you don't pay your staff any money ,then need not put them in your books,the tax man is not interested in people working voluntary for no money ,,I am blabbering on here ,and you could be in USA ,which in that case ,I got no clue what so ever ,
good luck where ever you are
2007-01-15 04:50:16 · answer #5 · answered by JJ 7 · 0⤊ 1⤋
You have no business liability for taxes if the business had no income (sales).
Just record all money lent to the company to make sure you and your partner get that money back if the business is successful.
Good luck in your venture
2007-01-15 04:48:07 · answer #6 · answered by Gem 7 · 0⤊ 1⤋
A partnership files Form 1965. It is due MARCH 15.
You MUST file the return. Even if no taxes are due and you do not file, the penalty for not filing is $250 PER PARTNER.
We can assist you with this no matter where you are in the country. Click my pic and send me an email and I will get you the details.
WealthBuilder
Tax Specialist
2007-01-15 04:30:49 · answer #7 · answered by WealthBuilder 4 · 1⤊ 2⤋
Everyone has to file a return period. the IRS detemines if you pay. If you don't know this you haven't a dogs chance in hades of success....Contact the Small Business Administration for advice.
2007-01-15 04:24:46 · answer #8 · answered by Anonymous · 0⤊ 1⤋
My understanding is, if you are running a Company (sole proprietors, corporations, limited liability corporations (LLC), partnerships, estates, trusts, and other entities ) you are required to file your taxes with IRS every quarter - that means 4 times a year. You may want to check on this, may be I am wrong.
Here are some links on what forms to use
http://www.irs.gov/businesses/small/article/0,,id=129520,00.html
http://www.mycorporation.com/newsletter/archives/Jan2003d.htm
2007-01-15 05:23:51 · answer #9 · answered by Venu 2 · 0⤊ 2⤋
Honey,here in America we pay taxes for everything.So, get ready.Uncle Sam welcome you with open arms.Period.
2007-01-15 04:25:24 · answer #10 · answered by Mario Vinny D 7 · 0⤊ 0⤋