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tax advise needed

Discussion in 'Business & Tax Advice' started by dillon.schulz8645, Oct 1, 2010.

  1. dillon.schulz8645

    dillon.schulz8645 Junior Member

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    So I am starting out with some good profits around 3k per week, how am I supposed to pay the taxes on these?

    It is just me alone I am not working with anyone else this is also my first business.

    Where do I pay it, who do I call or see?

    If I make $12k per month how much in taxes do I have to pay?

    I live in oregon but also stay in las vegas half the time.

    Any help would be grateful

    Thank You
     
  2. filmy

    filmy Junior Member

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    Get in the phonebook and find yourself an ENROLLED agent to do your taxes... They might want you to file quarterly but I never do... I file once a year just like everyone with a job.

    If you don't have that much overhead, you could end up paying as much as 25% and up. You need deductions big time.

    Find them.

    filmy
     
  3. CYBERTRON

    CYBERTRON Regular Member

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    You will pay for these with your personal taxes when you file. Try to save 30%-40% of your earnings. Look for deductions also.

    http://www.blackhatworld.com/blackhat-seo/blackhat-lounge/188444-irs-got-me-40k-today.html
     
    Last edited: Oct 1, 2010
  4. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    Pay quarterly... you can get a local bookkeeper to set you up for about 100.00. You do not need an enrolled agent or a CPA at this point.

    Keep records of all your expenses... ALL of them.
     
  5. filmy

    filmy Junior Member

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    No offense but a local bookkeeper can get you audited big time. I know because it's happened to me in the past with 3 different bookkeepers.

    An enrolled agent is really no more expensive... Mine does my taxes for a flat rate of $250 a year.

    Since I've been using her, I've never once had a problem with taxes and with local bookkeepers I was audited 3 times with 3 different bookkeepers. In fact, each of those 3 times, the IRS came back and REDID my taxes for me -- came up with some unGODly amount for me to pay.

    It was then that I found out about enrolled agents... If an enrolled agent amends your tax returns and the IRS accepts it -- which they almost always do BECAUSE THEY ARE ENROLLED AGENTS -- they can never come back to you about that particular year's taxes.

    You do NOT get this kind of protection with any other kind of tax person.

    Just my 2 cents...

    filmy
     
    • Thanks Thanks x 2
  6. BorisTipsIt

    BorisTipsIt Regular Member

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    Get a CPA. You are talking about making $140k a year. You should be using tax strategies to cut the amount you pay in taxes, not just getting taxes done at the end of the year. The way you are set up now, you are going to pay on your personal tax return with the Schedule C. This will mean you pay the 15.3 percent self employment tax. That sucks. Enrolled agents are better than bookkeepers by a mile, but a CPA is better than an enrolled agent as well.
     
  7. supamanjon

    supamanjon Power Member

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    damn 3k a week off the bats o.o nice
     
  8. 6hundy

    6hundy Junior Member

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    you dont have to pay taxes until April 15 so you don't need to write a check to anyone yet. But you do need to save. Allocate 30% for taxes but keep it in a high interest yielding account so you can at least benefit from all that income by making some interest. Even when you are a w2 wage earner, this is the smart thing to do. withhold everything and put your money to work for you until the govt takes it away. if you pay taxes monthly, quarterly, or in every paycheck you are missing out on the interest earned on that $$$. It may only be a couple hundred dollars for most over the coarse of the year, but why give it away. just takes a little discipline.

    aside from that definitely get a CPA or enrolled agent. they will be able to discuss business organization (C corp, LLC, etc) which could potentially save you some $$$. also save all your receipts. if you started your business this tax year you can deduct quite a bit as startup expense and anything you spend that is business related can also be deducted. theres a lot more to this but it varies depending on your situation....get a CPA and talk it out. it is definately good $$$ spent.
     
  9. filmy

    filmy Junior Member

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    My enrolled agent just happens to be an enrolled agent, a tax attorney, and a CPA. You will find that most enrolled agents are usually tax attorneys or CPAs or both.

    Which is WHY I recommend them.

    filmy
     
  10. becky

    becky Registered Member

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    If you're making that much, you should definitely talk to a professional CPA. And the good news is...you can afford it :)

    Nevada has no state income tax, but you must be a resident there. If you think it's an option for you, ask your CPA about switching residences from oregon to nevada. You'll probably need to get a nevada driver's license, etc.

    Talk to your CPA about the things you can deduct. If you haven't been in business before, you might be surprised how many things you can deduct. You'll need to keep records of those expenses.

    A good CPA can even provide some business advice as far as structuring things (you might talk to a corporate attorney also), type of entity, setting up a retirement plan, medical reimbursement plan, etc.

    You can ask them about how much you'll pay and how often. You might have to make quarterly estimated payments, but that will depend on a number of factors.

    Make sure you talk to someone good. Get some recommendations and/or interview a few people. They should not charge you for an initial interview (1/2 hour to 1 hour).
     
  11. teeniegenie

    teeniegenie Supreme Member

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    You want to establish Nevada as your domicile to avoid paying Oregon state income tax! You're crazy to not hire a CPA. A good cps is worth their weight in gold. I am also in Nevada and have some good CPA contacts if you want (no, I'm not a cpa - an attorney actually). A good general rule of thumb for you is to set aside 30% of the gross earnings for taxes. A CPA will be able to be more specific for you. With that kind of income you can start seriously considering forming a LLC to possibly add to your tax savings. PM me if you have any additional questions.

    Congrats on the great earnings!
     
  12. dillon.schulz8645

    dillon.schulz8645 Junior Member

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    if I move all my stuff down to las vegas then I do not have to pay any taxes?
    as a poker player it would be the best place to move :D
    ive already been saving to move to las vegas
     
  13. teeniegenie

    teeniegenie Supreme Member

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    No, you'll still pay FEDERAL income taxes. What you'll save on is having to pay Oregon STATE income taxes. The only thing that may be able to help you with your federal tax bill is a good cpa and (possibly) a LLC. Your cpa will be able to determine that.

    Legally, you need to call Nevada your "domicile". In other words, where are you registered to vote? Where does all your mail go? What is the area code of your cell phone? What state do you have your drivers license in?

    You are allowed to spend time in Oregon (or anywhere else) and still claim Nevada as home, you just need to get some of these fundamentals taken care of to cover yourself in the event of an IRS audit (which is becoming more likely every day it seems).