I've been thinking of opening such a business. How much money would I have to net before I am forced to start paying taxes? Or would it be based on gross profits? Would I have to file an income tax form, a separate business form or both?
2007-11-02 08:32:54 · 3 answers · asked by John S 6 in Business & Finance ➔ Taxes ➔ United States
If this home business is your only income, you would start paying income taxes at $400 per year.
If this business is in addition to a regular job, you would have to report anything.
Most people file small home business on a Schedule C that goes along with your 1040. It makes your regular return more complex but it is not a separate return by itself unless you form a corporation which I would advise against right away.
The best advice that I could give you would be to sit down with a CPA or EA in your area and discuss the situation.
2007-11-02 08:42:14 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
It relies upon on the form of small employer you intend on establishing. if it extremely is the form of employer the place you employ the residing house as an place of work in common terms and don't have shoppers coming on your door, then all you % in maximum jurisdictions is a employer license. regardless of if, if the employer involves foodstuff of any sort (i.e., catering), you will maximum probably % a scientific wellbeing coverage inspection and clearance. finally, in the experience that your place employer comprises human beings coming on your door (say a hair salon), then you definately maximum probably % a zoning variance as you would be working a retail business enterprise in a residential area. for sure, on condition that we've not got lots education on what you should do, extra focused motives can not settle for.
2016-09-28 05:12:14 · answer #2 · answered by ? 4 · 0⤊ 0⤋
I have three incomes. Each is a seperate enity, but combined in one return. Your tax person will take care of it.
2007-11-02 08:43:23 · answer #3 · answered by JES 6 · 0⤊ 0⤋