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  #21  
Old 12-13-2010, 07:44 PM
xclusive xclusive is online now
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Quote:
Originally Posted by 8rickyj View Post
I still run my company as a DBA (doing buisness as) I have insurance but I am not currently having to deal with the headaches with taxes and things like that. I am going to hold out as long as I can till absolutely have too.
Correct me if Im wrong but if you are not claiming that income from your business than technically evading taxes which is illegal?
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  #22  
Old 12-13-2010, 08:28 PM
gasracer gasracer is offline
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Quote:
Originally Posted by xclusive View Post
Correct me if Im wrong but if you are not claiming that income from your business than technically evading taxes which is illegal?
I agree. If you ever get audited you will be screwed.
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  #23  
Old 12-13-2010, 09:06 PM
8rickyj 8rickyj is offline
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I never said I didn't claim income.
Posted via Mobile Device
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  #24  
Old 12-13-2010, 11:13 PM
8rickyj 8rickyj is offline
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I should probably explain further. I have invested over 50 grand of my own money. I get to pay myself back for that before the company gets to claim a profit. Those payments back to me are how i pay my bills. I did not make 50 thousand of profit this year after expenses and equipment. When I do then thats when I have to change things. What I meant about not having to deal with the headaches of taxes means I do not file quarterly.
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  #25  
Old 12-14-2010, 02:12 AM
dhardin53 dhardin53 is offline
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Kevin, crawl before you walk or run a marathon. First things first. Going legit is a fine aspiration, ok starting off with a drivers license is good, but jumping to a LLC is a little over the top to me. Not that it will be something for you in the future. For now get a Liability policy and some Commercial Insurance on your dads equipment (truck and trailer) your using.

I love your approach, I was young once too but reallity is your a minor. Minors may buy a car with cash in some places but you cant get a licence tags for the truck or insurance being a minor. You will need your fathers/guardian signature or in his name till you become of age.

A long debated issue here is going legit and everyone has their opinion and approach. But my advice for you is to look into the local laws and regulation for setting up a business. Do you need a business license with your city or state? Make a plane to aid your father in getting a General liability insurance and Commercial insurance on the truck and trailer? Then the hardest of all is structure your IRS/Social Security, Self Employment payments. Basically this means KEEP all your receipt of expenses and to hold back a portion of you income as it comes in for paying your taxes.

Sad but so true today in the eyes of the Government and the Courts today if you have not paid in your not on the record/legit. Like some churches If you don't put money in the collection plate your not a member your passer by. No one want to pay taxes (me included) but the truth is if you don't set up some kind of business tax plan as soon as you have 2 extra nickles to rub together your putting off very large problem from the start.

Regardless if your business venture is for a short term easy cash or something to do till something better comes along, not a problem. But if you don't make some kind of plan to have some thing withheld and paying something to the the Government your just missing out. The tax issue is very controversy among LCO starting out. Many say Ill start paying in later and never do. Its to easy to work hard and just keep it all for yourself. But paying in your fair share is a huge step in going legit in my opinion.
Sorry i don't mean to throw water on you or anyone that has a different approaches to going "Legit". I'm looking at the bigger picture.
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  #26  
Old 12-14-2010, 08:33 AM
kgcs kgcs is offline
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Location: Middle Georgia
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Quote:
Originally Posted by dhardin53 View Post
Kevin, crawl before you walk or run a marathon. First things first. Going legit is a fine aspiration, ok starting off with a drivers license is good, but jumping to a LLC is a little over the top to me. Not that it will be something for you in the future. For now get a Liability policy and some Commercial Insurance on your dads equipment (truck and trailer) your using.

I love your approach, I was young once too but reallity is your a minor. Minors may buy a car with cash in some places but you cant get a licence tags for the truck or insurance being a minor. You will need your fathers/guardian signature or in his name till you become of age.

A long debated issue here is going legit and everyone has their opinion and approach. But my advice for you is to look into the local laws and regulation for setting up a business. Do you need a business license with your city or state? Make a plane to aid your father in getting a General liability insurance and Commercial insurance on the truck and trailer? Then the hardest of all is structure your IRS/Social Security, Self Employment payments. Basically this means KEEP all your receipt of expenses and to hold back a portion of you income as it comes in for paying your taxes.

Sad but so true today in the eyes of the Government and the Courts today if you have not paid in your not on the record/legit. Like some churches If you don't put money in the collection plate your not a member your passer by. No one want to pay taxes (me included) but the truth is if you don't set up some kind of business tax plan as soon as you have 2 extra nickles to rub together your putting off very large problem from the start.

Regardless if your business venture is for a short term easy cash or something to do till something better comes along, not a problem. But if you don't make some kind of plan to have some thing withheld and paying something to the the Government your just missing out. The tax issue is very controversy among LCO starting out. Many say Ill start paying in later and never do. Its to easy to work hard and just keep it all for yourself. But paying in your fair share is a huge step in going legit in my opinion.
Sorry i don't mean to throw water on you or anyone that has a different approaches to going "Legit". I'm looking at the bigger picture.
Thanks for the great advice. I have decided to become a Sole Proprietorship. I only need to do a Occupational Licence ($75) and a Trade Name ($27) then I will be legit. The only problem is I am more liable then I was earlier. And for taxes, I can just fill out a Schedule C on my 1040. But now I got a new question, can I sell my equipment to my Sole Proprietorship and write it off?
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  #27  
Old 12-14-2010, 10:59 AM
dhardin53 dhardin53 is offline
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Join Date: Dec 2006
Location: Lincoln, Il
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Great first step Kevin. Something that I did not mention that Is possible for you in some location Is to set up a business bank account. Here again many if not all banks to qualify for a business account you will be charged a monthly fee. Its not high but its a drain on your business during the winter or slow times of the year.Check around and look for a "Free checking " offerings and ask to see if they also can do you a FREE Checking for your business as well. With a business account you can get a business MasterCard or Visa in your business name. This type of account will be invaluable if started early for your age it will help break a few beriberi's of not being taking seriously..
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  #28  
Old 12-14-2010, 11:26 AM
dhardin53 dhardin53 is offline
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Join Date: Dec 2006
Location: Lincoln, Il
Posts: 707
To your question about selling your equipment back to your business? I'm not sure but if its your first year in business "Officially" you wont need to/or can not sell anything to yourself. Just add all your equipment up and declare it as your assets. I see what your trying to do but I'm guessing that your looking at it wrong. Yes you would like to get some kind of deduction for the equipment you have accumulated. But your lucky, so many have to go to a bank and get a loan to start a business. You have worked for it and already have what it takes. Now that your 'Official" all the start up equipment and anything from this point on is deductible for repairs, upkeep and supply and will give you plenty of deduction in the future.
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  #29  
Old 12-14-2010, 11:33 AM
kgcs kgcs is offline
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Location: Middle Georgia
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Thanks! It sounds like you really know what your talking about. The bank I currently bank at (BB&T) has a free checking account that I use for personal stuff. I went to their website and saw that they also have a free business checking account. Just hope there are not any age restrictions on that too....
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