7 Keys to Deducting it All » income

If my corporation has no income and has some expenses, do I need to file a tax return?

Fri, 10 May 2013 03:53:48 +0000

Question by Kiran C: If my corporation has no income and has some expenses, do I need to file a tax return?
I have a small business that I started in 2007. There will be no income until April 2008. The tax year will be calendar and the accounting system is cash. I have expenses for 2007. Am I required to file a federal tax return? Can I carry over the expenses to the 2008 returns? What are the benefits of carrying the expenses to 2008?

Best answer:

Answer by Rising Star
You’re not required to file, but reporting the expenses alone will help you to get some deductions for this year.

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Q&A: how does a small busines pay taxes on foregin income?

Fri, 03 May 2013 17:54:26 +0000

Question by luckytauro: how does a small busines pay taxes on foregin income?
This is a two part question since my business is International (meaning I am paid by a foreign country and I also pay contractors that are not US citizen and do not live in the US)

I am running a small Business that is fully paid by a European company and I’m wondering if i’m paying taxes on the Gross Income? Or only only on the Profits
Ex: my small business is paid 10,000 USD out of which I pay for my overhead of say 9,000 USD making my profit of 1,000 USD. So do I pay taxes on the 10K or only on the 1K?

Do I need to pay any tax or collect any tax for any of my contractors? I imagine not, since by definition, contractors report their own taxes.

Best answer:

Answer by Jennifer
You pay taxes on the 1k, but you will need to list the 10k as gross income, then deduct the 9k. Your tax preparer will be able to sort this out easily. Regarding collecting taxes for your contractors, you are correct, you will not need to collect taxes for them, but you will need to send a 1099 form at the end of the year.

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what percentage of my income do i take out for small business company?

Fri, 19 Apr 2013 07:59:51 +0000

Question by Earnest S: what percentage of my income do i take out for small business company?
i just started out with a small business with a friend it is a partnership and we get paid just for labor . When i get my first check how much do i put away for taxes? what % is it of all profits ..? please help dont want to fall behind even before i get started

Best answer:

Answer by Charlie & Angie G
As a partner you are not subject to withholding and must pay estimated taxes.

Without getting too technical you should put away 15.3% for social security taxes. You could then will out a W4 for your self and use the tables in pub 15 to figure the proper amount of tax to put back. This method will work well if your self employment income is your only income. If it isn’t you should use the method in the 1040ES.

If at the end of the year you are subject to estimated taxes you must pay them at least quarterly, however you can pay more often such as monthly.

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At point with a new business does one have to start reporting income?

Thu, 07 Mar 2013 02:14:47 +0000

Question by Michael: At point with a new business does one have to start reporting income?
My wife started a new small business for herself – custom framing. She got a check for $ 120 for her first project. At what point does she need to file (as a sole proprietor) to start her business officially and obviously for tax purposes?

Thanks for the help.

Best answer:

Answer by A Hunch
If this job is in addition to other earning = the first $ 1
Otherwise, the first year she earned $ 400.

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Does offering small businesses tax breaks while raising income taxes on the owners make sense?

Mon, 22 Oct 2012 01:02:55 +0000

Question by Me: Does offering small businesses tax breaks while raising income taxes on the owners make sense?

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Can a small business hired people and claim their income as 1099 misc for 3 months before paying taxes?

Tue, 09 Oct 2012 05:56:44 +0000

Question by beaver_lotsof: Can a small business hired people and claim their income as 1099 misc for 3 months before paying taxes?
I just found out my son is working and the employer isn’t taking out any taxes from his paycheck. When ask about it the employer said if he works for them for 3 months then they’ll start taking taxs, until then he’ll get a 1099 misc form at the end of the year. Is this legal? The state is Georgia.

Best answer:

Answer by Judy
No, not legal. If the person is an employee, they are an employee from day 1.

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how do you figure out the value of a small business? past tax returns or potential income?

Sat, 29 Sep 2012 14:53:17 +0000

Question by DMSP: how do you figure out the value of a small business? past tax returns or potential income?
If I needed to find out the value of my small business, whats the accurate way of doing it? I am no accountant. Just a hard working small business woman.

Best answer:

Answer by jestermags
There are different methods to estimate the value of a business. Many factors play into this appraisal, such as the area, growth potential, product(s)/service(s), value of equipment, etc.

Past tax returns by themselves are not enough to adequately value a business because too much information could be left off. Potential income, when calculated correctly, is certainly a component of the business’ value.

Normally, the best way to value a business is to hire a business valuation appraiser. This person will be able to use the correct metrics and apply them properly to your business. This will help you achieve the highest value when you sell your business.

I hope this has helped you.

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Q&A: Does a U.S. small business have to file taxes in Canada for a small amount of income earned in Canada?

Mon, 20 Aug 2012 14:27:32 +0000

Question by DFK: Does a U.S. small business have to file taxes in Canada for a small amount of income earned in Canada?
I am in a touring band, that is set up as an LLC. We played three shows in Canada in 2011, earning very little money (less than $ 500 combined). I just received a T4A-NR form from one of the promoters, and I don’t really know what to do with it…any help would be amazing.

Thanks!

Best answer:

Answer by neoplop
Yes, you must file and pay taxes in Canada for and Canadian-earned income.

An LLC is taxed in Canada as a Corporation, so you would need to file a non-resident Corporate return, form T2.

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/crprtns/menu-eng.html

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How much do I have to pay in taxes in Ontario on the income from my small business?

Sat, 23 Jun 2012 23:23:14 +0000

Question by : How much do I have to pay in taxes in Ontario on the income from my small business?
I registered my small business online this year and my revenue will most likely be around $ 15.000. I am unmarried and this is my only income. Thank you!
Thank you for the answer. THe business is composed of just myself. Supposing my netprofit is $ 15.000, could you give me an idea of the taxe deducted? Thank you agian.

Best answer:

Answer by Happy2Help
You don’t have to pay income taxes on your revenue. You pay income taxes on your net profit. Assuming it’s a proprietorship, you will pay the same amount as anyone else who makes money in the state as your business is taxed through your own personal income. If you own a corporation that’s a whole different story.

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Q&A: If you own a small business and your taxes go up how will you make up for the loss in income?

Sat, 19 May 2012 18:17:48 +0000

Question by jkherberger: If you own a small business and your taxes go up how will you make up for the loss in income? Best answer: Answer by robert eraise prices, if you are in a crucial industry, then the … Continue reading →