2007-09-09 09:24:02 · 3 answers · asked by Helena 1 in Business & Finance ➔ Taxes ➔ United States
What kind of business? C corp, s corp, partnership, sole proprietorship? That would influence the taxes you'd have to pay.
2007-09-09 09:33:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The way your business is set up, and how much you make, and other things about your personal situation would all enter into what tax you pay, and you don't give enough info to even guess.
You'll pay around 15% self-employment tax for social security and medicare, and if you make enough, will also pay income tax on your net income. If you are going to owe $1000 or more total for the year, you need to file quarterly estimated returns and pay in your tax quarterly.
Depending on where you live, there might also be state and/or local taxes to pay, and quarterly requirements for those also.
You can deduct many of the expenses of running your business and making that income. It's not real straightforward, so it would be a good idea for you to talk to a CPA to find out what records you should keep and what deductions you can take.
2007-09-09 17:13:31 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Everyone really summed it up. But if you're not all that good at taxes and accounting, you REALLY do want to get an accountant. The cost is a lot less than IRS fines and penalties for screwing up.
They can tell you what items you need to keep records so that they can be deducted on your taxes, as well as advising you what estimated taxes you'll need to pay.
Running a business without an accountant is like going into court without a lawyer. Which is like going to a gunfight with no gun.
2007-09-09 17:19:36 · answer #3 · answered by Marc X 6 · 0⤊ 0⤋