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Need tax directing advice

Discussion in 'Business & Tax Advice' started by Smokingfilla, Oct 22, 2015.

  1. Smokingfilla

    Smokingfilla Registered Member

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    So I'm in FLorida and since I can't get the art of affiliate marketing down I've decided to work and master the craft of E-Commerce(drop shipping right now).I'm stumped on how much I should expect taxes to take out of what I make.Do I file yearly,monthly,etc?I'm gonna assume yearly but I read you file your gross amount which might make things even more confusing to me but I'm not sure if that applies to E-Commerce.Like say I gross $100,000 but net $30,000,I thought it'd make more sense to file your net since that's what you have and can afford(sort of)to lose tax on vs your gross(something you don't have).Also,since I'm mainly gonna be dealing with paypal and Amazon I read they send out w-9's,if I file with them do I have to file myself(like go to hrblock or something)or does that count as filing?Thanks to whoever can help me
     
    Last edited: Oct 22, 2015
  2. eMonetize

    eMonetize Regular Member

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    You need to keep a record of all your income and expenses.

    You pay taxes based on your net, less the standard deductions that every one is given.

    Your are suppose to file your taxes quarterly. If you don't, you will get a penalty. However the penalty is pretty small. Don't quote me, but if you file yearly, I think the penalty is less than 1% of the value you owe...again - I'm not qualified to answer that question and you should seek proper advice on it.

    How much you owe is based on a sliding scale.

    Here is a list of 2015 federal tables:


    I can't post URL. Google: 2015 tax brackets


    Then you have 12.4% Social Security tax on up to $118,500 of your net earnings and a 2.9% Medicare tax on your entire net earnings.


    *** The key is to make as much as you possibly can above the $118,500, because you stop paying the 12.4% above that amount. This will drastically reduce your over all total tax rate that you end up paying.

    Florida has no state income tax, so the above is all you have to pay.

    Any HRblock can take care of this for you and will cost you like $300 ish.
     
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  3. ignotus

    ignotus Junior Member

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    Thats key what Emonetize said.

    However, you live in one of the best States to save on taxes. And in addition it's an online business. No need to form the LLC in the state (unless you specifically do business in Florida like having an office). So if not maybe forming an LLC (taxed as an S corp), S corp or something in Nevada or Delaware where you get better asset protection, save more on taxes, and privacy would be better

    Instead of HRblock find a local accountant who want's you succeed because then they keep coming back for financial advice.
     
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  4. AlphaRacks

    AlphaRacks Junior Member

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    I would recommend finding a local accountant who can personally work with you on your tax needs
     
  5. eMonetize

    eMonetize Regular Member

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    Wyoming is also good.

    I moved to Florida a long time ago, solely because they have no state income taxes.