Discussion in 'Business & Tax Advice' started by Essential Clix, Dec 18, 2007.
Do any of you guys do your own taxes, or do you pay someone to do it for you?
Wish i could help with USA
Read this though its UK
might give idea some ideas on paying less
First of all, if you are a sole proprietor, you are going to get SCREWED DE LUXE on your online income.
Secondly, NEVER do your own taxes, even if you know how.
ALWAYS have a signature on those tax forms from the "preparer" as if there are serious errors in the returns, even if unintentional, the worst the IRS will do is yell at you, audit you and charge you more money.
If YOU have prepared the returns and there are serious errors, even if unintentional, the IRS may well charge YOU with tax fraud, which is a CRIMINAL offence!
Thirdly, get a GOOD accountant!
A GOOD accountant will MAKE you more money than he or she costs.
I myself am a sole proprietor. I am looking to become an LLC. What is the best business to set up? I know a couple of other IMers that say I need to become a corporation and others say an LLC. What is the best option here?
which corp do u have?
i'm not sure if it's better to incorp or use an llc
Without seeming to pimp my own service, generally speaking a for-profit corp is a better deal for most people.
Any good accountant can make that corp show ZERO profit and therefore owe ZERO taxes; all quite legally.
You would then ONLY owe taxes on the amount of money that the corp paid directly to you for "consultation", for example.
LLCs are too complex for the average guy to keep up with and a real pain in the ass all the way around.
oh ok, thanks. i thought llc were easier. no yearly meeting and all that.
which corp is best for internet marketing? s-corp?
You have your meetings at the local bar over a beer or two.
For anonymity on the 'net a straight for-profit corp is the best way to go in my opinion.
PM me if you have further questions.
Incorporate in Barbados--> 3% tax
Incorporate in US state--->Dividends issued from Barbados = living expense and taxable
Fly to Barbados once a month, withdraw $9,999 not a dollar more.
Fly home. Keep your mouth shut and get a damn good accountant.
If you make over $500 from any company they are suppose to send you a 1099. If you want to do your own taxes there is a field in all the major software programs to add your 1099s. If you have people sending you PayPal that's where it gets a little more complicated and also where it gets easier to hide depending on who your clientele is.
I would second this. Don't do business or consulting as an individual filing 1099's & 1040's. Find a good accountant and get his/her advice on incorporating based upon your individual circumstances.
This depends entirely upon the state in which your're incorporated. For example, had I incorporated in the state where I reside, NY, I would be paying corporate taxes even if my business showed no income--let alone profit. That's why I'm incorporated in Delaware. I pay an agent on an annual basis and have "permission" from the NY Secretary of State to do business in the state of NY.
The whole issue of getting that "permission" can look daunting, if the state in which you want to open your bank account requires it, but your banker will likely be more than willing to take care of that for you.
Well if your smart you only file taxes for those
online income the IRS can track
Like when you make money on affiliate and the company is in another country .
The IRS will never get that info ....
Of coarse the smartest thing to do is off shore accounts but never tried that yet ..
The IRS Sucks !!!!
So.. Does anyone live in Canada? lol 'cause I have no clue where to start in my case...
- Claim as much business expenses as possible. Things like software, ebooks, books and your own dining can be claimed as expenses.
- Don't report all profits.
- Report some profits, so you can get loans and credit facilities.
Well, as long as we are on the subject of incorporation, you might want to take a look at my service posted in "Buy, Sell, Trade":
I have a question, if you setup a corporation with a bank account and lets say you got banned from EPN program, will you need to create a another corporation?
If anyone's UK based an needs a really great bookkeeper...who by the way can do most of what's required for you over the internet/email - drop me a PM
So I shouldn't signup as a sole proprietor?
Talk to an accountant and explain your situation. Otherwise, you are going to walk into your accountants office and he is going to tell you should have set up your business differently. Murphy's Law.
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