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02blackout
02-27-2010, 02:56 PM
Hey guys,
I'm about to get my business going cause its warming up. I already have 4 clients ready. Before I start making money:
-Is there an income limit before I have to start paying taxes?

Thank You
ObsessiveAutoDetail
02-27-2010, 03:22 PM
Federal, I believe you have to report anything over $600. It really varies State to State. Depending on where you are located, you may need to collect sales tax on the services you provide. You might want to consider at least consulting an accountant for your general setup as they can answer your questions more thoroughly and accurately.
ScottB
02-27-2010, 03:28 PM
just think about all those business expenses for new products ! Best of luck ...
zinc02gt
02-27-2010, 03:31 PM
Federal, I believe you have to report anything over $600. It really varies State to State. Depending on where you are located, you may need to collect sales tax on the services you provide. You might want to consider at least consulting an accountant for your general setup as they can answer your questions more thoroughly and accurately.

Best advice you can get right there IMO.
CEE DOG
02-27-2010, 03:34 PM
Yes, $600 is right for federal. You can start writing off lots of wonderfull things that you use for your business!:)

I use turbotax to walk me through my taxes. Works great for me.

Certainly couldn't hurt to talk to an accountant. Get a recomendation from someone you know to make sure you get somebody that knows there stuff.
PAR Detailing
02-27-2010, 03:40 PM
Im in the same boat as you, I just got my business legit. I havent started making too much money yet but youll have to get a tax ID # and a bunch of stuff for it. But yes you can write off all of your fun purchases from AG. I just placed an order 2 hrs ago and I get to write that off!!! Consult an accountant or tax professional as they can help you much much more than I can.
The accountant I am working with stresses to KEEP ALL RECEIPTS!
Mirror Detailing
02-27-2010, 05:36 PM
For federal you dont pay taxes over $10,000. So if you show a business income of $9,999 then you do not pay taxes on that amount of money. This will still let you claim expenses, but once you cross $10,000 of income you will pay taxes on it.
cnfowler
02-27-2010, 06:40 PM
It is going to vary depending on your age, how you file, etc.

Here's a good chart to guide you.

How Much Money Do You Have to Make to File Taxes? (http://www.mydollarplan.com/money-file-taxes/)

Colin
JohnHenry
02-27-2010, 06:58 PM
Slightly off topic, but I highly recommend QuickBooks. I use the Simple Start edition. I bought it in 2005 for an incredibly low price... I think it was only $10. (Googled it. It's free now.)

I've run two businesses on this program. I just print out an annual report and drop it off at an accountant each tax season.