Tax Season --------HELP!!!!!!

I

imported_ajbarnes

New member
To all business owners....I humbly ask for all your advice!:(



This is my first year in business, therefore this is my first year filing taxes as a business owner.



On to questions:



1. I am self-employed with no employees.

2. I live in Philadelphia, P.A.

3. My legal structure is Sole Proprietorship



A. What taxes do I have to pay to the I.R.S?

B. What taxes do I have to pay to the state?



I THINK I have to pay Personal Employment Tax to the state, and.....I have no clue what I have to pay to the I.R.S.:nixweiss



I already got the hang of paying state, local sales, use and hotel occupancy tax......everything else dealing with self employment taxes is a mystery.



Last question:



I had to apply for an EIN number from the I.R.S. labeling me as an employer. I needed the EIN number to open up a business checking account. I'm noticing that I have to file form 940 and form 941. I don't have employees, it is just myself. I know I probably still have to file those two forms, but do I have to pay anything??



Thanks!:xyxthumbs
 
I would suggest making an appointment with a CPA to review your business taxes. That is what I did. I am not a detailer but I am self employed.
 
ajbarnes said:
A. What taxes do I have to pay to the I.R.S?

B. What taxes do I have to pay to the state?
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A. You should have already been paying quarterly estimated Income Tax payments during 2003 to the US Treasury. (Form 1040ES) Also, the final quarterly estimated tax payment for 2003 is due by January 15, 2004.



B. You should have already been paying, monthly or quarterly Sales & Use Taxes to the State of PA during 2003.



I would suggest that you get to an accountant as soon as possible for the professional advice you need.



If you would like to call me and talk about what you need to do, just send me a PM. I would be happy to give you my phone number.



Best regards...
 
I just met with my accountant today, and it was the best meeting i have ever had :) he went through all of the tax stuff for me, told me what i could write off, and how much, informed me that since i dont have employees, the form 941 is filled in with 0's I really advise finding a good accountant that knows what he/she is doing.



Just like frank said, if you want more information, just PM me for my Phone #, and i would be more than happy to discuss all the knowledge that i have gained from act. 101, - 301, and from my new tax advisor who went over the new laws with me.



Godd luck if i dont hear from you



Michael Gleeson

Diamond Detailing
 
You should also discuss incorporation with your accountant. This cuts your tax bill in half. You can also deduct the computer that you are working on right now no matter how long ago you purchased it.
 
my accountant said he would be sure that i dont have a net profit, he said that it is best to find everything to write off from truck, to gas, this computer, etc...
 
ajbarnes said:
Yeah, I also have alot of tax write-offs too. In fact, I didn't even make a net profit!:( :D
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ajbarnes,



In many cases, new businesses do not make a profit for the first three to five years. That is because most of the money they make is going right back into building and growing their business.



Think about it. In the beginning you have got to pay for all of the start-up supplies and products. Not to mention your vehicle and all of the other expenses a new business encounters.



As time goes on and you become better established most of those start-up costs will begin to go down. At the same time your net profit should begin to improve. It all takes time.
 
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