Sales Tax

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duke46
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Re: Sales Tax

Post by duke46 » Mon Nov 18, 2013 5:47 pm

If you are self employed then you have to pay estimated tax in quarterly on federal and state income. I was just a sole proprietor and if I didn't do that and I didn't then I would be penalized at the end of the year and I was :lol:

I never got into the LLC deal and never will and I just offered a service in both trades. But I do know taxes should be paid in the whole year and then adjustments made at TAX time.

The biggest problem is you are not getting paid on a reg basics and you are not guaranteed to make any thing so it is had to let go of money when you have not made enough to pay in the estimated tax.

There are a lot of tricks in the trade for tax write offs so make sure you use and can prove them and you good to go. Stuff like that should not be posted on the net but could be found on it or just start asking diff people in the trades and see what they do.
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RPpowdercoating
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Re: Sales Tax

Post by RPpowdercoating » Tue Nov 19, 2013 12:59 am

It varies by state,
I have a shop in NY, I have to charge sales tax on anything that goes out to a customer.
I mostly do work for other business's though which have a Tax ID # so I don't charge them.
I keep all the information in a log to keep track of all that along with the invoices and send the tax's into a separate account so its not touched and let the accountant do all the work.

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duke46
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Re: Sales Tax

Post by duke46 » Tue Nov 19, 2013 8:25 am

With not knowing what he knows about being self employed is why I through in the income tax. Some people do not even think about it because they never had to. Now if he also has a reg job and taxes are paid in or his wife has a job and taxes are paid then he can hold off on that for a while unless he hits a gold mine and really gets up and going and making a lot of bucks.
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Detective Coating
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Sales Tax

Post by Detective Coating » Tue Nov 19, 2013 12:31 pm

I do not pay the self employment tax of 15.3%. The business is set up as an LLC with an s-corp election so there is more paperwork than a standard LLC and have to file minutes quarterly. I'm just going to have to call my accountant in to get it all figured out, just wanted to avoid paying them anymore.
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shockwavepc
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Re: Sales Tax

Post by shockwavepc » Sun Feb 22, 2015 8:45 am

I wish I knew that... I set mine up as an LLC running it through a sole proprietor. I'm curious what it would look like if I was set up as an S corp.

Hmmm now you have me thinking Justin.

This was my first year in the LLC with the powder coating business and tax time is normally an awesome time for my wife and I. Not this year :lol:

Carey

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hjeades
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Re: Sales Tax

Post by hjeades » Sun Feb 22, 2015 9:27 am

shockwavepc wrote:I wish I knew that... I set mine up as an LLC running it through a sole proprietor. I'm curious what it would look like if I was set up as an S corp.

Hmmm now you have me thinking Justin.

This was my first year in the LLC with the powder coating business and tax time is normally an awesome time for my wife and I. Not this year :lol:

Carey
What was different? I am a sole proprietor and thinking of switching to the LLC.
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rbroker
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Re: Sales Tax

Post by rbroker » Sun Feb 22, 2015 12:33 pm

LLC separates personal from biz. If you get sued by someone for business related things, right now they could clean you out and everything you own. If your LLC then they can only go after business assets.

I just went s corp to alleviate the 15.3% SS tax burden. You have to file quarterly with the gov. If a s corp status. But if I under stand it right. I only have to pay 7.875% SS tax instead. But there's also more paperwork for the accountant to do. So I spend more money with them to hopefully Dave from laying the gov more.

The irs told me in writing that this type of service is taxable in MN. So that's what I do unless it's biz to biz with a tax exempt status. You should really have the IRS tell you what to do, otherwise if you get audited and you haven't? Guess what, you are gonna have to pay all the tax that should have been collected probably going back 7 years I would assume. Ouch!
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hjeades
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Re: Sales Tax

Post by hjeades » Sun Feb 22, 2015 1:10 pm

rbroker wrote:LLC separates personal from biz. If you get sued by someone for business related things, right now they could clean you out and everything you own. If your LLC then they can only go after business assets.

I just went s corp to alleviate the 15.3% SS tax burden. You have to file quarterly with the gov. If a s corp status. But if I under stand it right. I only have to pay 7.875% SS tax instead. But there's also more paperwork for the accountant to do. So I spend more money with them to hopefully Dave from laying the gov more.

The irs told me in writing that this type of service is taxable in MN. So that's what I do unless it's biz to biz with a tax exempt status. You should really have the IRS tell you what to do, otherwise if you get audited and you haven't? Guess what, you are gonna have to pay all the tax that should have been collected probably going back 7 years I would assume. Ouch!
I was told by them here that I have to pay quarterly if my yearly total goes above a certain amount otherwise I can pay yearly. I take it ss tax is social security?
Harley
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Dano
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Re: Sales Tax

Post by Dano » Sun Feb 22, 2015 2:36 pm

Harley,

In Illinois, they would tax a fart if they could figure out how to measure it. But then, those rathead politicians would just make you file an 'estimated' volume per week. :lol:
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hjeades
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Re: Sales Tax

Post by hjeades » Mon Feb 23, 2015 9:03 am

Dano wrote:Harley,

In Illinois, they would tax a fart if they could figure out how to measure it. But then, those rathead politicians would just make you file an 'estimated' volume per week. :lol:
Great now that you mentioned that they will be making a new "natural gas" tax.........thanks buddy.


:lol:
Harley
Happiness is crusing in your street machine with a big breasted woman and a cold beer!
Definition of a Street Machine: A high horse power vehicle able to burn tires in high gear, & capable of evading high speed pursuit.
Restoration is not just a way of life, it's a way to bring new life. Save a car build a hot rod!
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