Question by romance_writer_woman: What does a new small business owner need to pay taxes ever year and what kind of things can be written off?
I just started a small business. What do I need to know about paying taxes every year? Also, what kind of things can be used as write offs?
I have no employees and am basically self-employed. Not sure if that makes a difference…
Answer by kimbo
Your a sole proprietor which means you don’t have any employees. So you will need to file taxes the same way a contractor would. I know that business need to file FICA taxes but i’m not sure if that consists of self employed… I think they would do it differently but similar to FICA. Write offs can be items that are account recievables that you know will be uncollected. Bad debts. You need to have an allowence account. There is a lot of things you need to know. I suggest buying a book or taking an income tax class to get some knowledge. Go to a local bookkeeper or accountant to help you do your reports.
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