Helpfulbox Now Offers Free POS Software for restaurants, kiosk, and any other retails business completely free used windows cashier system or as full blown POS. You will able to print to kitchen, display orders on the kitchen screen, manage inventory, employee, report, customer loyalty offers, employee management, delivery address track and much more, al for free.

sole proprietorship tax deducted first check? I have a sole proprietorship and I'm working from home, providing an editorial service to publishers. I just completed my first job and got paid $900. How much should I take out for taxes? I'll use about 2/3rds for business related expenses, and the other 1/3 for personal use. I've heard that a sole proprietorship doesn't need to do taxes until it starts making a profit. What counts as a profit? Any income that is not used for business related costs? Also, do I need a business license? And do I need to pay state and city taxes?

By: Guest
Date: Unknown--
Response
0
re:sole proprietorship tax deducted first check

You need some schooling on computing extimated taxes (more or less quarterly) for Fed and state, and perhaps NYC. Fed information is at http://www.irs.gov/pub/irs-pdf/f1040es.pdf .

You also need to get smart on the IRS consumer guide Pub 334 http://www.irs.gov/pub/irs-pdf/p334.pdf

[d] By: Guest
Date: unknown---
Response
0
get thee to an accountant

You have no clue.

You are self-employed, so in addition to regular income taxes, you owe self-employment tax (both sides of social security and medicare). You, like anyone else, have to do taxes every year. Whether you make a profit or not is immaterial. Qualfied business expenses are deductible. Yes, you probably need a business license, and of course you pay state and city taxes, same as everyone else.

Please get some qualified advice, you don't want to screw this up.

[d] By: Guest
Date: unknown---
Response
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clearly you are not charging enough :-)

YOu pay taxes on ALL money that you earn, less your deductions. The rule of thumb is to set aside about 25% or so of every paycheck you get for taxes. Don't go spending the whole thing. Granted you may only end up paying on the 1/3, but that 1/3 is your profit. There is no such thing as personal use, anything over your expenses is your profit.

[d] By: Guest
Date: unknown---
Response
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1/4 of profit

You should set aside money to pay taxes when they are due. Just take out 15% - 25% of the amount you get paid for. If your business is not making a profit, then you have nothing to worry about

[d] By: Guest
Date: unknown---
Response
What is 1 + 100



Helpfulbox Now Offers Free POS Software

for restaurants, kiosk, and any other retails business completely free. It can be used as windows cashier system or as full blown POS. You will able to print to kitchen, display orders on the kitchen screen, manage inventory, employee, report, customer loyalty offers, employee management, delivery address track and much more, all for free.

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