Can anyone tell me about paying taxes on a small business, forms to file, and how to obtain a tax table?

Answer 1

I'm assuming you aren't planning to incorporate. You'll need to file a schedule C or C-EZ, a schedule SE, and a form 1040 (not 1040A or EZ). You'll show your income and expenses on the schedule C. The number from the bottom of that will transfer to schedule SE to calculate your self-employment tax (social security and medicare). The numbers from the bottom of the two schedules C and SE will transfer to your 1040, where you'd also show any other income you might have. You'll then figure your tax using the same tables as if you were working for an employer.

But you'd be wise to talk to a CPA to determine exactly what records you need to keep and any other accounting-related issues you have to deal with. Having the CPA prepare your return the first year would be a good idea, and will give you a pattern to work from in future years if you want to do your own return.

Answer 2

It depends on what kind of business you have.

For a sole proprietorship, follow Judy's advice.

For a partnership, you will file form 1065 for information only, and then you need schedual K with the return and K-1's for each partner.

For rental property, schedual E.

For an LLC, file form 1040 if only a single member, or form 1065 if there are several members, and then scheduals K with the return and K-1 for each partner.

"S" corporations file form 1120-S. Owners report earnings as dividends whether they're paid out or not.

"C" corporations file form 1120. Owners report earnings as dividends, but only if they're paid out.

Of all of these business forms, only the "C" corporations are taxed themselves. The others are for information only, and the income is transfered over from the business tax returns to each individual 1040 according to whatever share they are entitled to.

Answer 3

I refer you to the Bill Clinton era. Obviously you haven't been looking at the bottom lines of the larger corporations. There are only a very few small businesses that net profit more than $250,000 per yr. You claim that Mr.Obama is not being honest. His plan at least leaves clauses for adjustments for small businesses. We've done so well under Bush (who McCain voted with most of the time) I don't know why we don't just keep Bush. The economy is fine, everyone is working, no one is losing their pensions, the rich are paying their fair share of taxes, etc. This is heaven. Edit: I will post a web site if you will.

Answer 4

A better idea than coming here to find out what forms you need: If you don't already know, you should call a bookkeeping service immediately and let it help you with the books. Many people start businesses because they know how to do the work but not how to run the office. They end up in bankruptcy very quickly. Avoid being one of them.

Answer 5

All joking aside, call the IRS. They are really very nice and helpful.

Joe

Answer 6

Go online IRS...they have forms and info to download.Simpler than you thought>except when it comes to payin! LMAO!!!!!

Answer 7

It sounds like you need an accountant.