taxes

**ride5150** · 05-26-2011, 12:16 PM

so im licensed and insured and mobile, should i be charging tax on my services? do you guys charge tax?

**ObsessiveAutoDetail** · 05-26-2011, 12:17 PM

Originally Posted by ride5150

so im licensed and insured and mobile, should i be charging tax on my services? do you guys charge tax?

Depends on where you live. Some states require sales tax collection on services, some do not.

**ride5150** · 05-26-2011, 12:19 PM

Originally Posted by ObsessiveAutoDetail

Depends on where you live. Some states require sales tax collection on services, some do not.

do you know where i could find the info for this?

wait so how does it usually work, i have to give the state some money after each sale? or do i pay it all when i do my taxes?

i just dont want to be doing my taxes later and have to pay out of my pocket.

**OCDetails** · 05-26-2011, 12:24 PM

Originally Posted by ride5150

do you know where i could find the info for this?

wait so how does it usually work, i have to give the state some money after each sale? or do i pay it all when i do my taxes?

i just dont want to be doing my taxes later and have to pay out of my pocket.

You will most certainly be paying out of pocket either way. I would set aside at least 40-50 percent of what you earn to pay when tax time rolls around unless you have an accountant to help you save. And that isn't even counting if you have to calculate use tax for your state. You are going to want an accountant to help you deduct as many of your expenses as possible so the amount you have to pay is as low as possible. It is just another one of those costs of doing business.

**ride5150** · 05-26-2011, 12:25 PM

theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?

**ObsessiveAutoDetail** · 05-26-2011, 12:37 PM

Originally Posted by ride5150

theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?

I'm not sure if there are any qualified CPA's or business lawyers on here, I am not. You seem to have quite a few questions and as a new business owner, you should.

In order to make certain you do not miss anything which might leave you exposed to tax or other liabilities, I would recommend you seek the advice of a certified individual (CPA or lawyer) in your city or town that is familiar with your local tax and business codes and regulations.

**StephenK** · 05-26-2011, 12:37 PM

Originally Posted by ride5150

theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?

what did you apply for? LLC, Corporation, D.B.A.?

**ride5150** · 05-26-2011, 12:47 PM

Originally Posted by detailgod

what did you apply for? LLC, Corporation, D.B.A.?

im not even sure. i went to my city hall and bought a business license, it doesnt say LLC or anything like that on it. this is starting to get frustrating

**OCDetails** · 05-26-2011, 01:06 PM

Originally Posted by ride5150

theres another thing im not really clear about, i have a business license that i got from my city hall, am i LLC?

Just having a business license doesn't structure your company. Unless you are legally structured then you are just a DBA/sole proprietor. You can't just start slapping letters like LLC or INC behind your business name unless you are legally structured that way and have filed the paperwork. You really need to head to a library and pick up a book on starting a business. Having a business license is important, but it doesn't protect you or your personal assets from lawsuits. There are plenty of books on it. Get the LCC for Dummies book on Amazon. It is a great place to start.

**ride5150** · 05-26-2011, 01:19 PM

Originally Posted by ObsessiveAutoDetail

The LLC really doesn't offer any tax advantages. It really just shields your personal assets in case of a lawsuit or if the business fails... I have a sole proprietorship right now and general liability insurance.

did you have to register anywhere as a sole proprietor? im on hold right now with the illinois secretary of state...i hate all this tax stuff i just want to detail some cars already:P

Originally Posted by OCDetails

Just having a business license doesn't structure your company. Unless you are legally structured then you are just a DBA/sole proprietor. You can't just start slapping letters like LLC or INC behind your business name unless you are legally structured that way and have filed the paperwork. You really need to head to a library and pick up a book on starting a business. Having a business license is important, but it doesn't protect you or your personal assets from lawsuits. There are plenty of books on it. Get the LCC for Dummies book on Amazon. It is a great place to start.

i wont do LLC, i have liability insurance for 300k and am mobile, i think a sole proprietorship combined with my insurance will be ok.