TAX PLANNING
ENTREPRENEUR SMALL BUSINESS HOME BUSINESS RECORDS
FEDERAL INCOME TAX FORM DEDUCTIONS ACCOUNTING 1040 IRS HELP INSTRUCTIONS RETURN ADVICE INFORMATION STRATEGY INFO FREE
EDUCATIONAL ARTICLE
If you
have a small or home business, be sure to
understand your tax requirements.
TAX
PLANNING FOR THE ENTREPRENEUR OR NEW SMALL BUSINESS
There is a
certain excitement in the starting of a
business. Everything is new, or new to you, and
there is so much to do and to complete. There
are bills to pay, supplies to order, accounts to
balance, staff to train, taxes to pay…taxes…
If you have
recently started your own business, be it
accounting or zoological consulting, you are
required to report your income to the Federal
government, and most often to your state and
local government. There is a wealth of
information out there on self employment,
working from home, running small businesses –
but not much is ever really said about taxes for
the sole proprietor.
TAXES
FOR THE SMALL BUSINESS
Depending on your residency, you may be responsible for city, county, and state
income taxes as well as sales taxes. You will need to contact your local
government in regards to the rates and time frames in which these taxes need to
be paid. Keep in mind that different areas have different controlling bodies and
therefore may also have different tax rates. If you conduct business in more
than one location, you may need to be informed of the different tax structures
in those areas.
Federal income taxes are required on all worldwide income and that includes
self-employment income. If you work for someone who pays you cash, keep in mind
that “under the table” does not mean tax-free. There is no such thing as under
the table income. If you work for yourself, you will be required to keep track
of your income and expenses. These are both reportable on the Schedule C form
from the IRS.
You may also be required to send in quarterly tax payments to the IRS. Quarterly
tax payments are made to the IRS, as part of the pay-as-you-earn system of tax
paying. While employed persons have withholding taken out of their checks every
payday, self employed persons must pay that withholding themselves and that is
what the quarterly payments are set up for.
Consulting an accountant and a tax professional are highly recommended for
anyone starting a business, especially for the first time. There is also a
wealth of information, most of which the IRS will send you printed copies of
free of charge, at the IRS website. Don’t be surprised at tax time; learn about
your tax liability now!
To
teach and learn more money skills, personal finance, and money
management, please go to the Money
Instructor home page.
Entrepreneur Small
Business Taxes
Accounting and
Preparation - Tax Tips Deductions Itemized
2004 2005 2006 -
Dependent federal income
tax exemption Question
Techniques Suggestions
Preparation Free
Tax Information
If you
have a small or home business, be sure to
understand your tax requirements.
To
teach and learn more money skills, personal finance, and money
management, please go to the