i'm doing a project for school, and we're setting up a salon. and also have a few questionst to answer...What do you pay taxes on? we also have to choose how to do our taxes quarterly or yearly...which one is better???
Please help...
2007-03-14 12:26:09 · 3 answers · asked by urda14eva 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
You pay the sales tax that you collect and send it to your state's tax board.
In regard to income tax, you pay tax on any income that you make. Usually quarterly is better.
2007-03-14 12:30:23 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You pay taxes on your net income - that would be all the money you took in, minus related expenses (examples rent, utilities, equipment, shampoo).
You would be required to file an estimated tax return quarterly and pay in the taxes you think you owe for what you made that quarter. Then at the end of the year you do a return for the year, and if you owe more, you pay it, or if you paid in too much, you get it refunded to you.
2007-03-14 13:52:28 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Quarterly is better...easier to estimate so you do not get hit with penalties
You will be paying sales tax on items sold...property tax (its Not just property such as land and building) on your equipment
If you own the building then property tax on it also
Income taxes.... you will have to do a profit and loss statement
If you have employees you will have payroll taxes to report (some you pay as well as those withheld from employees')
Good Luck
From a Accountant
2007-03-14 12:38:28 · answer #3 · answered by healthynow 2 · 0⤊ 0⤋