i want to start my own buisness how do i determine my taxes?

Answer 1

If you make over 400 you will pay SE tax at 15.3% plus income tax at your marginal rate. If you are married filing joint return and your spouse makes a lot you are probably in the 25% bracket so pay in estimated taxes on Apr 15, Jun 15, Sept 15 and Jan 15 of the following year of at least as much as the prior year total tax liability less what your spouse has withheld but do save 40.3% even if you send in less.
Get a good accountant especially when you first start to help you with depreciation and what expenses are deductible. Don't rely on tax prep in a box firms they don't know much.

Answer 2

The first thing you need to do is talk to an accountant. There are several options in terms of how to legally format your business: sole proprietor, sole proprietor LLC, partnership, C corp, S corp, etc. How you set up your business largely depends on what your business does. There are certain types of businesses which are best suited to certain types of entities. The only way you're going to figure this out is with a good accountant. Try to get some referrals from other local business owners, if that's possible for you. Most accountants have a free initial consultation, so it's definitely worth your time to do it right the first time.

Answer 3

For federal taxes, taxable income can be estimated using a Form 1040 Schedule "C" Profit and Loss from Business which is available on the IRS.GOV website. On Schedule "C" list revenue and subtract expenses to determine business net taxable income. That net business taxable income is added to any other personal income you have for the tax year (wages, interest, etc) on your personal tax Form 1040. You are also subject to Social Security and Medicare tax on the business income which can be estimated using Form 1040 Schedule "SE" Self Employment Tax.

Start-up business can have net negative income for the first few years, and that loss can reduce your total personal income, thus reducing taxes.

Be sure to check with your State Tax Department regarding collection of any sales taxes. You must add these to your customer invoices and remit directly to the state. Different states have different sales tax requirements.

Answer 4

It really determines how much you make, when you open up a business the govt will give you all that paperwork, bring that to h and r block

Answer 5

People who cannot spell business will be more likely to stay out of bankruptcy court if they work for someone else.