Tax questions....to file or not to file.

Discussion in 'Business Operations' started by drsogr, Nov 2, 2004.

  1. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    Basically I have done very little work this year. I was planning on learning this year and getting started next year. Fortunately I got sucked into some work and learned some lessons this year that will help me next year. My question is should I file business taxes? I work fulltime, and do this part time. I have spent more on my business this year than I have made. I am a sole-proprietorship.

    I need to find an accountant, is it best to find one now, or wait until tax season? How will they charge me? I know during tax season they charge a flat rate....how about during the offseason?

    Thanks for all your help.
     
  2. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,391

    find one now. worst time is during the tax rush.

    i'd file so that you can either take a loss this year from the venture, or carry it forward to next year. whatever you do, talk to an accountant if you're not sure what to do.
     
  3. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    You really have no choice, esp if you had other income as well because as a SP you file all income sources with your personal taxes.
     
  4. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    you must file. no legal way not to. the loss on the business will offset income from your other job.
     
  5. Electra_Glide

    Electra_Glide LawnSite Member
    Posts: 75

    I agree with MacLawn. In one way, it's a good thing. As a sole proprietor you'll be able to use your business loss to offset some of your income from your full-time job, and lower your overall tax burden.

    BTW...I'm in the same boat for this year as you.

    Take care...

    Joe Kantz
     
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi drsogr,

    Do you know any other local business owners that could suggest a local CPA?
     
  7. drsogr

    drsogr LawnSite Bronze Member
    Posts: 1,275

    I haven't even began to look. I was looking at the possible tax benefits of filing, since I lost about $200 in my business this year and was wondering if it would even be worth filing, considering I will probably spend $300 getting an accountant and everything else. It sounds like I have to file no matter how much I make or lose for that matter. I was under the impression if you lost money that could consider your business a hobby.
     

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