Official Small Business & Tax Considerations Thread

[JahFocus CS]

I thought it would be a good idea for those of us who own/are involved with startups and small businesses to have a thread to discuss tax considerations since those considerations are especially important for small companies and individual entrepreneurs. So whether it is insight into what taxes you may be on the hook for, strategies to reduce tax burdens, etc., let this be the thread for it.

 

[JahFocus CS]

I'm aware of the following basic taxes:

• Federal income tax
• Self-employment tax
  • Social Security tax (12.4%)
  • Medicare tax (2.9%)
• State income tax (depending on your state)

 

[JahFocus CS]

What tax software is everyone using? I made a quick and dirty spreadsheet in Excel myself to estimate my tax liability, but that definitely doesn't beat accurate tax software.

 

[MillionMills]

What tax software is everyone using? I made a quick and dirty spreadsheet in Excel myself to estimate my tax liability, but that definitely doesn't beat accurate tax software.

Prosystems

 

[DrBanneker]

What tax software is everyone using? I made a quick and dirty spreadsheet in Excel myself to estimate my tax liability, but that definitely doesn't beat accurate tax software.

I use GnuCash as my business' accounting program and TurboTax as the tax software. Works well so far.

 

[satam55]

I thought it would be a good idea for those of us who own/are involved with startups and small businesses to have a thread to discuss tax considerations since those considerations are especially important for small companies and individual entrepreneurs. So whether it is insight into what taxes you may be on the hook for, strategies to reduce tax burdens, etc., let this be the thread for it.

I'm aware of the following basic taxes:

• Federal income tax
• Self-employment tax
  • Social Security tax (12.4%)
  • Medicare tax (2.9%)
• State income tax (depending on your state)

What type of retirement account/plan do you recommend opening for self-employed individuals/small business owners?

 

[JahFocus CS]

What type of retirement account/plan do you recommend opening for self-employed individuals/small business owners?

I personally haven't thought about that just yet, trying to get some more racks before I start diverting money to retirement. Good question though.

 

[ill]

Subs

 

[Primetime]

I'm aware of the following basic taxes:

• Federal income tax
• Self-employment tax
  • Social Security tax (12.4%)
  • Medicare tax (2.9%)
• State income tax (depending on your state)

Franchise tax, for some states

 

[JahFocus CS]

How does the estimated tax payments situation work?

From what I'm reading, it seems like you have to annualize your quarterly income and pay taxes on that amount. But if your income fluctuates throughout the year, it's hard to do that. Why can't you just calculate your liability at the end of the quarter and pay that amount?

 

[The Don]

Is there any good books/websites out there on tax preparation for an LLC? Write offs, losses, itemized deductions, etc.

 

[DrBanneker]

Is there any good books/websites out there on tax preparation for an LLC? Write offs, losses, itemized deductions, etc.

 

[G.O.A.T Squad Spokesman]

How did I miss this thread?

 

[NeilCartwright]

I use 1800Accountant, it’s been pretty easy to use so far.

Just filed my 1099-misc for a guy I pay with one of these online E-filers today. Got all my expenses categorized. We showed a loss so we’ll see how the tax bill shakes out.

Still kinda new to filing business taxes but it’s been more enjoyable than I thought

 

[Gwoppo]

I use 1800Accountant, it’s been pretty easy to use so far.

Just filed my 1099-misc for a guy I pay with one of these online E-filers today. Got all my expenses categorized. We showed a loss so we’ll see how the tax bill shakes out.

Still kinda new to filing business taxes but it’s been more enjoyable than I thought

How did things turn out?
What have you learned since then that you wish you knew?
Is their a specific resource you wouldn’t mind passing on (a website, YouTube channel, etc.)