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View Full Version : I have a tax id... now what?


madmow
06-11-2003, 05:16 PM
Hey All, This is my first year (by myself) in the business. I have a tax ID and a business account. How do I get taxes automatically taken from me? How do I pay sales tax regularly? I would like to know because for years I worked at places that just took these fees from me automatically. I am not sure how to go about calculating everything and I don't want to be considered a scrub. I also want to build my credit so I can use the money I have made to get myself a loan in the future. I worked for a guy who didn't report a lot of stuff and I just don't want to be that guy.

Here's is what I have:
Tax ID
Business Account
Liability insurance
Commercial Insurance for my truck


Now what?!

Thanks

Lombardi
06-11-2003, 05:20 PM
You can get set up to pay your taxes quarterly if you want. The amount is an estimated amount of what you think you might earn in that time. Talk to your tax person first.

madmow
06-11-2003, 05:21 PM
who is my tax person? An account? Can I do my taxes online?

Lawn Tek
06-11-2003, 06:18 PM
Find an accountant now .
Don't risk tax advice on a forum

madmow
06-11-2003, 06:20 PM
what kind of accountant specifically? Do they have small business accountants? Is this expensive?

Thanks

Turf Medic
06-11-2003, 06:23 PM
You need to find a CPA. However, are you doing this part time? Do you have a full time job? How much do you think you will make with the lawncare this year?

gogetter
06-11-2003, 06:48 PM
Originally posted by madmow
what kind of accountant specifically? Do they have small business accountants? Is this expensive?

Thanks

Madmow, pick up the phone book! :D
Look under Accountants. Look for ads that say "specializing in small business" (I'm even looking at an ad right now that says "new start ups, small business services").
Then just start calling them and asking questions. Find someone you like and arrange to meet with them for a consultation. Some even have "free intial consultation".

I've come to learn that the yellow pages are your friend.

mtdman
06-11-2003, 09:32 PM
Find an accountant that will trade you lawn service for accounting. That's what I did!

When you own a business, you have to pay the taxes. Nobody takes anything like in your paycheck. And if you have employees, you gotta take their money and pay their taxes and contribute to SS taxes for them. It's kinda complicated, so an accountant is very important.

:D

edrenckh
06-11-2003, 11:34 PM
First get an accountant.

Things to consider...
Incorporate or not, I recommend S-corp.

Keep track of income and expenses. An accountant may be able to advise easy methods to do this. I use a computer, quicken, excel for the most part.

Download any forms you need from the IRS web site. The accountant should be able to tell you which ones. 941, 941 deposits, estimated taxes are a few. FUTA will be required at year end.

Your state will also require sales tax, income tax, unemployment tax.

Your county/city may require some taxes as well.

You will need to make your own tax deposits at a local bank. You need the 941 deposit form for this. You should probably have a business bank account too. Look for a free one.

Start keeping track of all your expenses. I would imaging that it will take 2-3 years before you show a profit and have to pay income tax. Sales tax is due even if you lose money.

Good luck!

madmow
06-11-2003, 11:56 PM
Thanks Fellas. All the help is much appreciated. It is raining again....So I guess I will have time to call up a small business accountant!