Your Questions About How To Do Business Taxes Online
Charles asks…
What’s all required to start and online resale business?
Me and a friend of mine are working with starting and online business and selling fourwheeler parts and accessories, riding apparrel, and possibly other stuff and eventually in a few years, depending how good it does, start up a local store and add more things to our line… What’s all required to start an online business? Business name registered/business license, tax number, etc…
Jere answers:
My husband is a member of an Internet marketing community called Wealthy Affiliate. It is like a school for internet marketers.
There are a lot of people in it that know what they are doing and everybody is trying to help each other. You can learn so much there. The forums, the support, the coaching, all the information they provide you with. You can find the right answers for most of your questions regarding starting an online business, advertising, etc. It is a great program.
Check it out if you want to… I guarantee you will not regret it: http://www.wealthyaffiliate.com?a_aid=jV6Ylqvy
Donald asks…
How much do I have to pay in taxes in Ontario on the income from my small business?
I registered my small business online this year and my revenue will most likely be around $15.000. I am unmarried and this is my only income. Thank you!
Thank you for the answer. THe business is composed of just myself. Supposing my netprofit is $15.000, could you give me an idea of the taxe deducted? Thank you agian.
Jere answers:
Total income taxes for a single self-employed individual in Ontario making $15,000 a year are $400. In addition, you will have to pay $1140 in CPP premiums.
You don’t need to deduct income tax from anything. When you file your tax return, you will complete form T2125 regarding your self-employed income. Just write a cheque for the balance you owe.
If you get to the point where you make enough money to pay $3000 in tax, CRA will ask you to make installment payments. But they’ll send you a bill. Don’t worry about it until they do.
David asks…
Maryland and IRS tax for online business?
I live in maryland and would like making an online shop (commissoning costume) as part time to help pay for school.
I know i have to pay 15.3% to irs for SE tax but:
1. what is the income tax i have to pay to the irs if i make about 12,000$ a year (net income)?
2. What the percent or amount of tax do i pay to the state of Maryland for the net income in #1?
3. Since it is part time, do i need a business license/permit/tader license or other legal document to sell online or at all?
4. When i pay estimate tax to the IRS, does the amount payed to the IRS cover both IRS and Maryland tax owed or do i have to pay sepereatly to IRS and MAryland?
5. What percent i shoud withhold to pay the IRS and Maryland tax? (15.3% SE tax + Income tax % + maryland tax % = ?)
I don’t have an accountant now since i’m plannign to only have a part time shop but if i must i will find one. If i need one, how much will they chrage for questioning service or service in general for me?
Jere answers:
1. This depends on your TOTAL income and filing status. Get the instructions to form 1040-ES to calculate this. If you are single, no dependents and this is your only income, you are in the 10% tax bracket. Tax on $12000 is $305 after exemptions and standard deduction.
2. Maryland has a nice estimated tax calculator at https://interactive.marylandtaxes.com/percentage/502.asp
3. See link below
4. Separately
5. See above
You also need to charge sales tax on sales to Maryland and New York.
Nancy asks…
How do I apply or begin my online business in Canada?
I have a product………..credit card companies, business licenses, tax info, shipping receiving, these things I need to think about now before I go head first. Help is appreciated. Thankyou.
Jere answers:
Contact your local governments small business division. They should be able to give you the information that you need. Good Luck
-Carye
http://www.IBOPlus.com/40485726
http://www.EveryoneBenefits.com/40485726
Donna asks…
If I have an online book business on amazon do I have to pay taxes?
I’m pretty confused. If I have an online book business through Amazon, how does the tax thing work out? Can somebody attempt to explain this to me? If it’s through my parents credit card how will that work?? I’m so lost; I’m such a Noob when it comes to these kinds of things :
Jere answers:
Selling stuff on line through Amazon is the same as a storefront when it comes to income taxes. You buy stuff at one price and sell it at another. The difference is your gross income from which you deduct allowable expenses. In most cases the income and expenses are reported on Schedule C. This type of return is normally due on April 15th just the same as a wage earner. Keeping good records are essential as there will be no W-2 form to tell you what your income was. Knowledgeable if not professional help would be advisable if you have not file such a return before. The fact that your parents are involved may just confuse things a bit. The first question is this your business or theirs. If the account is in their name they well may need to account for the income on their return. All the more reason to consult with a tax professional.
Powered by Yahoo! Answers