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DeMenkey
07-13-2012, 04:29 PM
How much do you collect on the state and fed taxes from each person/job. And how much to I save in the bank to pay taxes at the end of the year. How does this work anyways? I live in White County, Georgia.

WorkForMySelf
07-13-2012, 05:34 PM
No idea. I have spent almost every dollar on new equipment and am paying myself less than 20k for the year so I expect to pay almost no taxes. My accountant will give me the good news at the end of the year so in reality I have no idea lol. I know we get a tax break for opening a new business but have to make a certain amount of taxable profit or will lose our business license and become "hobbyist" lol wtf that means.

LawnBoy0311
07-13-2012, 06:37 PM
collect cash. what the IRS don't see, the IRS don't know...:D


Obviously kidding.:eek:

Steve
07-16-2012, 12:58 PM
How much do you collect on the state and fed taxes from each person/job. And how much to I save in the bank to pay taxes at the end of the year.

This will be based on a number of factors. But if you can estimate which tax bracket you will be in, you can estimate how much you need to save and then pay your estimated quarterly taxes.

You can look up the tax brackets though in your state and the federal government and get a better estimate.

Also remember you are not just going to pay state and federal income takes, you also have to pay self employment tax.
"The self-employment tax in the United States is typically set at 15.30% which is roughly the equivalent of the combined contributions of the employee and employer under the FICA tax. The rate consists of two parts: 12.4% for social security and 2.9% for Medicare. "

I don't mean to scare you with all this, just make you aware. Will you be handling your accounting/taxes or will you have an accountant do it?

CHEESE2009
07-16-2012, 05:32 PM
collect cash. what the IRS don't see, the IRS don't know...:D


Obviously kidding.:eek:


:D

http://www.serious-loans.com/wp-content/uploads/2011/09/Hiding-Money-From-the-Government.jpg

hehehe

DeMenkey
07-17-2012, 09:01 AM
I'm gonna do it this year than hire an accountant.

Steve
07-17-2012, 01:42 PM
Keep us posted on how it goes for you. I am sure you will do fine. The first year though is always an eye opening experience.

Martywdx
07-17-2012, 08:02 PM
In Iowa sale tax is collected on gross sales with lawn-care services, not net,except for snow removal. No sales tax need be collected for the state. go figure :rolleyes:

branchoutshrub
07-20-2012, 08:13 PM
Hiring an accountant is the best way to go. I did it 3 years ago and its made life a lot easier. Granted he charges a bit for his services, but it makes taxes a little less stressful. I pay taxes quarterly to help ease the pain.