Mobile detailers and taxes..

Do you have to pay quarterly or just once a year? I read somewhere if your a sole proitership.. you have to file and pay quarterly which is about 4 times a year.
 
Im paying yearly... this being my first year though. I suppose it depends on the business though and how much your taking in.
 
soysaucial said:
Do you have to pay quarterly or just once a year? I read somewhere if your a sole proitership.. you have to file and pay quarterly which is about 4 times a year.
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Correct, with a sole proprietorship (not sure about others) you have file and pay your estimated taxes quarterly. The hard part is trying to make sure you get it right...but it is best to err on the overpayment side than underpayment.



If detailing is your sole source of income, you may be able to get by under-reporting your income and paying less in taxes but good luck buying a house or financing a car because creditors will look at your income and laugh.
 
I forgot the reason why but I only report yearly... hrm.. maybe I'm suppose to be doing it quarterly but I've never heard anything back about it.



Only thing is they did show up at my house wanting sales tax and saying I owed a fine... I took the form and wrote zeros down the whole thing and sent it back saying, "I don't do any sales that I'm required to collect sales tax on" Haven't heard anything back from that so I assume it's alright... lol
 
You should check with your states Department of Revenue or find a very good accountant or tax service, (and that doesn't include H & R Block).

The state of Wisconsin requires you to collect sales tax. You can collect it seperate or as part of your rate quote, but it must still be paid
 
An FYI for those that may not know, but for those that are sole proprietors and detail full time (or do enough side business to effect their taxes) they should consult with an accountant and/or attorney. There are some significant tax advantages to forming an entity and being taxed as an S-corp when it comes to social security, income taxes, etc.
 
bet993 said:
An FYI for those that may not know, but for those that are sole proprietors and detail full time (or do enough side business to effect their taxes) they should consult with an accountant and/or attorney. There are some significant tax advantages to forming an entity and being taxed as an S-corp when it comes to social security, income taxes, etc.
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Is S-corp the one where your business income flows right into your personal income and is not double taxed?



It's the reason I did a Single Member LLC. You'll have to check with your local LLC laws. For LA taxes I files as an LLC but for Federal I files as a Sole Proprietor. The money I make is not double taxed.
 
An S-corp is a "flow through" entity just like a LLC (which btw a LLC can be taxed as an S-corp also). For Federal Tax purposes a single member LLC is considered "disregarded" entity. Usually, LLC's offer advantages over s-corps when it comes to reporting requirements to the state and other internal paperwork. LLC's also offer distinct advantages for holding real estate.



The S-corp vs. LLC discussion can get detailed and should be discussed in detail with an attorney and/or account. That said this article has a good example of the tax advantages I was alluding too.



ARTICLE
 
ajbarnes said:
I've been paying taxes yearly until starting this year I'll be switching to quarterly due to an increase in income.
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It will be easier writing 4 smaller checks than 1 large one. :p



My mechanic files his taxes yearly instead of quarterly. He'd rather pay fines than deal with taxes 4 times a year. Go figure. :shocked
 
You should be able to get them online or at your local IRS office and for your state check with your states Department of Revenue
 
Be sure to check your local tax codes . Some cities require you to still file and pay estimated taxes even if you file yearly.
 
MY state does not tax services (such as detailing, lawncare, etc.).



Many Statesdo tax services like yours. It really is inexpensive to consult with a professional (CPA) regarding your tax requirements. Don't EVER ask me how I know, but I've paid the "tuition" to learn!



Jim
 
My taxes are usually about $7,000 total. 2004 was my first year that I paid for my and my families health care out of my pocket. I paid about $5000 and every penny was tax deductable. So this year I paid only about $2000 in taxes.
 
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