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HPI_Savage25
01-08-2012, 08:02 PM
Ok so I just got my business license a few months ago, back in september I believe. Anyways I am 18 and live with my parents still and I am going to school full time AND doing a lawn care business. I am trying to figure out what I need to do tax wise for my first year and such. Any insight as I am completely lost!

Thanks for the help!

TiedemanLLC
01-08-2012, 08:07 PM
Ok so I just got my business license a few months ago, back in september I believe. Anyways I am 18 and live with my parents still and I am going to school full time AND doing a lawn care business. I am trying to figure out what I need to do tax wise for my first year and such. Any insight as I am completely lost!

Thanks for the help!

You need to setup an appointment with an accountant. Some of the things they can handle for you, while some other things you can handle. Make sure to ask lots of questions such as in regards to service taxes, sales taxes, income tax, what to withhold, what to pay in, etc.

mark123
01-08-2012, 08:08 PM
Take all your income and expense records and receipts to your tax preparer. That's what I do.

End of year I run the tax reports from Quicken Home and Business for expenses and I run the sales tax reports through the year using Gopher. What I paid sales tax on is my income. The tax lady takes it from there.

HPI_Savage25
01-08-2012, 08:10 PM
My mom is an accountant and she files all of our taxes herself but this is the first year that we are dealing with a business. So I need to gather up all the receipts and a report of all my income?

mark123
01-08-2012, 08:12 PM
My mom is an accountant and she files all of our taxes herself but this is the first year that we are dealing with a business. So I need to gather up all the receipts and a report of all my income?

Yeah, it's best to run a program to track everything or at least keep a ledger book throughout the year. That way you don't get ulcers in your stomach from the stress of trying to find and organize everything.

HPI_Savage25
01-08-2012, 08:16 PM
I keep all my receipts in a folder and in a sheet protector by business name. So all my dump receipts are in one page, all gas in another and so forth.

Ready to get this done with so I don't have to stress over it. I have only had the license for a few months and really haven't done too much work and my expenses is WAAAYYY over income so hopefully I won't have to pay too much

SECTLANDSCAPING
01-08-2012, 08:24 PM
I keep all my receipts in a folder and in a sheet protector by business name. So all my dump receipts are in one page, all gas in another and so forth.

Ready to get this done with so I don't have to stress over it. I have only had the license for a few months and really haven't done too much work and my expenses is WAAAYYY over income so hopefully I won't have to pay too much

If your expenses is higher then income you wont pay anything.

The tricky parts are fixed assets and depreciation. Everything else is straightforward.

mark123
01-08-2012, 08:26 PM
If your expenses is higher then income you wont pay anything.

The tricky parts are fixed assets and depreciation. Everything else is straightforward.
Yeah, it takes a few years before you pay taxes. My first and second years I fretted over sending in quarterly estimated taxes because I barely had enough to send but they kept it until I had my taxes prepared and they sent it all back. Well, the federalis did, the state kept it all.

SECTLANDSCAPING
01-08-2012, 08:37 PM
The first year I listened to quickbooks. QB told me anything permanent was a fixed asset. Then the accountant told me not to count anything under $500 as a fixed asset. The majority of my equipment is under $500.

I was thinking of setting up a IRA this year. I dont feel like giving the feds that much money to piss away in foreign investments. Do you know much about this?

mark123
01-08-2012, 08:56 PM
... I was thinking of setting up a IRA this year. I dont feel like giving the feds that much money to piss away in foreign investments. Do you know much about this?

I've had an IRA for about 10 years now. I usually intend to run my numbers past my tax lady at the end of the year to see if I should dump some extra cash into it but she disappears between April 15th and January 15th. I'm switching to another accountant after after this time.

Basically, what you put into the IRA is tax deferred. You don't pay tax on it as it grows so the profit is rolled back in and it also gains interest. You pay tax on it when you take it out after retirement age. You take a huge hit if you want the money before that though so make sure you're not going to touch it until you retire.

TiedemanLLC
01-08-2012, 09:21 PM
I've had an IRA for about 10 years now. I usually intend to run my numbers past my tax lady at the end of the year to see if I should dump some extra cash into it but she disappears between April 15th and January 15th. I'm switching to another accountant after after this time.

Basically, what you put into the IRA is tax deferred. You don't pay tax on it as it grows so the profit is rolled back in and it also gains interest. You pay tax on it when you take it out after retirement age. You take a huge hit if you want the money before that though so make sure you're not going to touch it until you retire.

What made you decide to do an IRA instead of a ROTH? I am just curious.

I know what you mean about the accountant issue. Don't get me wrong, I have a great accountant, but when I need a consultation, it's $120 a visit. Even if I am only there for 5 mins.

mark123
01-08-2012, 09:29 PM
What made you decide to do an IRA instead of a ROTH? I am just curious.I just rolled over my IRA from my old job and didn't change it. Of course I don't match 3% like they did since its all my money going in.

I know what you mean about the accountant issue. Don't get me wrong, I have a great accountant, but when I need a consultation, it's $120 a visit. Even if I am only there for 5 mins. Yeah, mine goes up $20 every time I see her without fail. I interviewed another accountant already. I should get her involved now so she can set up my expenses before they start rolling in.

bruces
01-08-2012, 10:16 PM
does anybody else not find it very odd that the original poster is asking for tax advice ,yet his mother is an accountant ? Personally ,I would ask my mom before soliciting internet advice .

TiedemanLLC
01-08-2012, 10:21 PM
does anybody else not find it very odd that the original poster is asking for tax advice ,yet his mother is an accountant ? Personally ,I would ask my mom before soliciting internet advice .

Yes I did notice, but kind of ignored it. I figured he is trying to figure out alot of this by himself without relying on his mother. When I was young, I was the same way. I wanted to find out everything for myself first.

TiedemanLLC
01-08-2012, 10:24 PM
I just rolled over my IRA from my old job and didn't change it. Of course I don't match 3% like they did since its all my money going in.

Yeah, mine goes up $20 every time I see her without fail. I interviewed another accountant already. I should get her involved now so she can set up my expenses before they start rolling in.

Yeah, my annual taxes go up every year, normally $20 to $30 more each year. It used to be free consultation, but ever since a couple years ago they charge now.

Steve
01-09-2012, 01:58 PM
My mom is an accountant and she files all of our taxes herself but this is the first year that we are dealing with a business. So I need to gather up all the receipts and a report of all my income?

You should be all set with your family connections!

Keep track of your income and your expenses and I am sure your mom will be able to help you out. The one thing you should investigate is to see if your state requires you to collect sales tax on your services.

Keep us posted on what advice your mom gives you once she looks through it all.