Your Questions About How To Do Business Taxes Online

Jere answers:

The link below has some info on how to prepare your taxes. I hope this helps!

Jere answers:

??? You may want to consult a competent tax preparer/accountant. Or visit the business section of your local bookstore and find a decent book or two on small business accounting and taxation. Also check out www.irs. Gov, they have resources for small businesses.

If you don’t understand the taxes and you make lots of money, you could get into a heap of trouble. You need to deal with sales/use tax, income tax and self-employment taxes.

A 1099 is an information return given to the IRS by businesses who hire independent contractors to report the payments to those contractors. The independent contractor also gets a copy of the 1099.

If you are the business owner and people who buy your products pay you directly, then there will be no 1099 issued to you – you are responsible for keeping track of your income, and if you get audited by the IRS, you will need to supply the documentation (receipts, sales logs, bank deposits etc.)

Usually, sales tax and income tax are two separate things with two separate tax returns. You pay your sales tax to the state based on the sales you have made.

You generate revenue and deduct your expenses to get your net income. You report your net income on your Federal 1040 form – probably on a Schedule C – but this will vary depending on the business structure you have. You will also have to pay self-employment tax with your Federal tax return.

You also report this net income on your state income tax form. You might also have to file a local income tax form.

If you are doing Internet sales, you will have to check with each state you do business in to see if you owe them sales tax. Many states are now starting to charge sales tax or use tax on Internet sales.

Jere answers:

You need professional help unless you want a nightmare.

I say this because if you are asking a basic question AFTER you have already run the business, then a tax pro, like me, of course 🙂 is going to help you start taking the reins of your business to manage it and understand how to save on taxes moving forward.

You need to PLAN to save on taxes; it doesn’t happen by itself or just by wishing to pay low taxes.

The old-fashioned way of dumping a pile of receipts on your accountant’s desk (or trying to figure out Tubby Tax) is a guaranteed way to be overpaying your taxes. Not to mention the accounting bill.

Jere answers:

You do not charge tax for on line sales. Your discount is calculated on the original price. Any product purchased out of state and shipped outof state is not subject to state taxes. If it was taxed you would have to no the tax rate for each state and charge sales tax for your state, their state and then file your sales tax quarterly for each that that you sold an item to. This would put e commerce sites out of business.

Jere answers:

$5,000 is a lot of money to invest and risk losing. Make sure you deal with verified suppliers and that you have a way of checking if the suppliers were able to deliver and is not a scam. Liquidation is one of the best method of sourcing items in bulk/pallet/truckload that will allow you great room for profit. Learn more about liquidation from the source I am providing below. Cheers!