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Tax,irs

Discussion in 'Business Operations' started by BRAD ROMEO, Oct 25, 2006.

  1. BRAD ROMEO

    BRAD ROMEO LawnSite Member
    Posts: 34

    Hi I Have Been In Business For 4 Yrs.
    I Have No License,but Ready To Get One .
    I Have Been Told Buy A Few PEOPLE THAT I DO NOT HAVE TO PAY TAX FOR THE FIRST 5 YEARS.THEY ARE JUST PEOPLE NOT IRS.ISTHIS TRUE.
    THANKS BRAD
     
  2. firefightergw

    firefightergw LawnSite Gold Member
    from Texas
    Posts: 3,340

    NO I wish it was.
     
  3. Randy Scott

    Randy Scott LawnSite Bronze Member
    Posts: 1,915

    Does that mean you haven't been paying taxes for the last four years if you are just getting a business license now?
     
  4. PTP

    PTP LawnSite Bronze Member
    from Tulsa
    Posts: 1,370

    Often, in the first years of business, a business won't make any profit. All of the income will go toward building the business and will be eaten up by various tax deductable expenditures.

    If this is the case for your business, then no, you don't have to pay any taxes on your profit because there was no profit. You do however need to keep your records and file the appropriate paperwork such as quarterlies, year end, etc.

    So, in a nutshell: You make a profit, you pay taxes. And if you say that you did not make a profit, you had better be able to prove that.
     
  5. mslawn

    mslawn LawnSite Senior Member
    from LA
    Posts: 483

    So after 4 years in business, you decide to ask this question? If you already do not know the answer to this, your best bet is to go to your local Mickey D's and flip burgers. I am not being rude, I am just telling the truth.
     
  6. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    I hope for your sake you have been filing returns at least!
     

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