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  #1  
Old 04-04-2009, 02:51 AM
stevenf stevenf is offline
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Paying taxes on business income

For the past two years I have included everything as my income. This year im aiming for some commercial accounts and wanting to expand. I am going to start having a business account and start paying myself an hourly rate.
Question: Do I pay income tax on untouched business income? Or is it considered a different tax bracket?
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  #2  
Old 04-04-2009, 02:52 AM
topsites topsites is offline
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I highly recommend you speak with an accountant.
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  #3  
Old 04-04-2009, 03:35 AM
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sweetz sweetz is offline
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Quote:
Originally Posted by topsites View Post
I highly recommend you speak with an accountant.
I agree with top, weirdly enough, but I agree with him.
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Old 04-04-2009, 04:08 AM
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Littleriver1 Littleriver1 is offline
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I'll add to my post count to, and say their correct. Find one that will help you hide your wealth well. Obama will be around to see you soon. I've heard he visits this site often.
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Old 04-04-2009, 04:18 AM
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Richard Martin Richard Martin is online now
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I believe that in order to do that, and have it mean anything to the IRS, you will have to become either an LLC or INC. As stated above, a tax professional can guide you in this.
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Old 04-04-2009, 07:53 AM
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terrapro terrapro is offline
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No offense but this is the exact reason why alot of people should not be running a business. If you do not know the difference between business entities you probably shouldnt be in business. Please do yourself a favor and pick up a business book before you end up in prison for tax fraud. The IRS doesnt care if you didnt know any better.

Assuming you are a sole proprietor, you can not collect an hourly pay even if you tried your hardest. It is already all yours, it is like taking money from your left pocket and putting it in the right(well whatever does not go to taxes that is).
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  #7  
Old 04-04-2009, 07:56 AM
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AI Inc AI Inc is online now
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Quote:
Originally Posted by topsites View Post
I highly recommend you speak with an accountant.
Thats the correct answer right there. Do it right , and do it now.
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  #8  
Old 04-04-2009, 08:07 AM
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hvphotog hvphotog is offline
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Quote:
Originally Posted by stevenf View Post
For the past two years I have included everything as my income. This year im aiming for some commercial accounts and wanting to expand. I am going to start having a business account and start paying myself an hourly rate.
Question: Do I pay income tax on untouched business income? Or is it considered a different tax bracket?
Steve

your business will pay taxes on the business profit based on anual earning and what you pay yourself personally you will have to pay persoanl taxes on minus any dependants and interest on your mortage and any other deductions that you may have. Now with the business you have many more deductions such as advertising, office running expenses and the list goes on.. Get in touch with an CPA and they will set you up in the righ direction. Even though you take a small salary you can pay your cell phone bill, truck bills, health beni's and much more through the business as a business expense keeping down the overall profit margin of the business..
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  #9  
Old 04-04-2009, 08:09 AM
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hvphotog hvphotog is offline
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oh forgot to mention or ask actually, are you an LLC, Inc or DBA? LLC being the better of the 3 protecting against liability the best without having to form quaterly and yearly shareholder meeting notes that a Inc does... DBA's leave you open to many problems and less tax right offs
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  #10  
Old 04-04-2009, 10:19 AM
lawnman_scott lawnman_scott is offline
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Quote:
Originally Posted by kolawns View Post
I agree with top, weirdly enough, but I agree with him.
I dont know if we are all high, but I agree will topsites too............ I am on cold meds so I am not thinking right.......
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