Any tax experts out there?

[Mohrenberg]

So I found this website, Outright.com

it's only $10 a month, and is certainly cheaper than paying an accountant.
I'm looking for a cheap way to keep good records of sales and expenses for tax season. I failed to do that last year and ended up paying A LOT when I had records of payments received without being able to show expenses paid, So I got taxed on all of it.

Of course, I'll have to keep records of my expenses in physical form, but I think this website will be good to keep me somewhere in the right range with the IRS, so I don't get fisted again.

 

[Manongjojo]

Quick Books is a good program.

 

[Spectre Gadget]

Maybe you should think about incorporating. Something small, like an LLC, will allow you to shed some of that tax liability.

CONS:

Two tax returns.

Time consuming (planning can curb this)

PROS:

Taxes are paid after bills. For your personal finances, IRS takes taxes out of your paycheck before you recieve it, then issues a refund at the end of the year. With corporations, you list your income, your bills, operating costs and other expenses, then the difference is considered profit. Profit is taxable by a cetain percent, unless dedicated to some other non-taxable purpose (expansion, future growth, purchase of assets, etc.)

If you get sued for some sort of alleged negligence, they can only sue one taxable entity: you, or your business, NOT BOTH! They can take your house, but not your business. On that same note, if they sue you personally for something your business did, well, they just lost a court case because you (personally) may not be liable for what your business did.

Profits can be rolled over into many numerous tax-exempt purchases. These include, but are not limited to: Raw materials, storefront stock, benifits and salary for employees, company vehicles, rent for businessfront property (rent your garage at your house out to your business HINT!!!), electric-gas-water utility for business purposes, tools used in your business, maintenance costs, and many, many, more.


I am no CPA, but I read a many financial books while in the military. There's a reason wealthy people tend to stay that way... they study money. I read this book and, even though it gives a drink-the-coolaid kind of wonderful outlook on incorporating, it gives you an idea on how to shed that tax burden and liabilty risk from your small business and yourself.

Inc. and Grow Rich!

Hope this helps!