taxes

[MikeMaupin]

I have been doing this line of work to make extra money and just this year invested 2 k into this business. I have not paid taxes in the past and have really not been legit as a business.I have grown and it has become a business instead of just some extra money.Noiw you guys can call me a scrub or low baller or whatever and I do want to do the right thing.I just want some help here.I talked to a friend about this who has and runs a heating and air business and he says he just keeps taxes out and then at the end of the year pays this and takes his earnings and tax money to his tax person.My question is is this right and can you do it this way or do you need a tax ID # ? How do I go about the paying of taxes ? Do I pay this quarterly or at the end of the year ? Please give me some advise and ways to do this. I really dont think I need an accountant, and cant afford one for that matter.What steps do I have to take from A to Z.Before it was no big deal because I was small, didnt make to much money and I wasnt about to pay taxes or anything on something that small, but now I am bigger and growing and its become a job now.The last thing I want is the tax man coming to my door or following me around spying on me. I want to do the right thing and be a legit business.Thanks

 

[NickN]

You don't need a tax id unless you're buying wholesale and reselling at retail prices.As for the taxes,you can pay them once a year(April 15th) included with your personal income if you're a solo operation.My accountant takes care of my business and personal income at the same time.Charged me $95 this year.I can't afford NOT to have an accountant do this for me.Got a healthy refund too.
You can claim all expenses and income you've had for the past 3 years(I think).Need to have receipts and records in line to do so though.

 

[The C Man]

This thread should be moved to the Business forum.

 

[Jimbo]

You can't afford not to have an accountant. Trust me!! I just paid $1200 in tax prep and correction fees because I was using an accounting firm which did not have a bonified CPA. They screwed things up, and next thing I know the IRS was on my back.

If your business is worth it pay the $100-200 and spend one or 2 hours speaking with a CPA. Write all your questions down in advance.

Get insured, and incorporated if your serious about this. Once your incorporated any liabilities become business liabilties which you can get insurance for. If not you leave yourself open to personal lawsuites.

 

[JimLewis]

I really dont think I need an accountant, and cant afford one for that matter.

Than you shouldn't be in business, in my opinion. You need to make an accountant a priority. You've asked more questions than I can possibly go into here without typing for half an hour. And why are you asking lawn care guys accounting questions????

Get serious with your business and make it a priority to get yourself legitimate. You say you can't afford an accountant, but you've got it all wrong! YOU CAN'T AFFORD NOT TO HAVE AN ACCOUNTANT You're going to end up taking bad advice from friends who really don't know what they are doing either and getting yourself in more and more trouble as time goes on.

Raise your rates. Start advertising more. Do advertising that doesn't cost a lot of $ (flyers, knock on doors, etc.) and get yourself some more $. Then use that money for an accountant, attorney, and other things you need to form a legit. company before you end up in some serious trouble because of your ignorance.

btw, I applaud your willingness to get legitimate. That's the right thing to do. It's just your attitude about how to do it needs to change a little.

 

[DLCS]

Originally posted by JimLewis
Get serious with your business and make it a priority to get yourself legitimate. You say you can't afford an accountant, but you've got it all wrong! YOU CAN'T AFFORD NOT TO HAVE AN ACCOUNTANT You're going to end up taking bad advice from friends who really don't know what they are doing either and getting yourself in more and more trouble as time goes on.

I couldn't agree more, getting myself an accountant was one of the best decisions I have made.