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Newbie tax questions

fmapapfmapap subscriber Posts: 8
First off, I do know I should be going to an accountant for these questions and I will be sometime this month but I`m too impatient and am very curious about the questions.
Just to set the stage, this year I formed an LLC with a partner for a software/webdesign company.  We both have normal 9-5 jobs and do this work mostly in the evening.  This past year we had no revenue (as we`ve bee doing mostly development) and a small amount of direct expenses.  So now a few questions
1) Even though we have little expenses and no revenue should we still see a CPA (I`m pretty sure I know the answer but figured I`d ask)?
2) Since this year (and probably next year) revenue will be low and expenses high (or at least higher) do our losses roll over to regular income to reduce our net?
3) If my partner and I plan to be 50/50 partners but we spend different amounts on expenses can we easily write off different amounts as losses?
4) In a situation like ours what would you consider reasonable things to expense?  Home office space? Home office supplies? Any other common things I may be forgetting?
5) Any other things a newbie like me should be thinking about and/or doing?
Thanks in advance,
Frank

Comments

  • MNGrillGuyMNGrillGuy subscriber Posts: 2 Member
    1)  No way.  This should be easy to do with tax software.  (Schedule C)
    2)  Your losses roll over to reduce each of the partners regular income as a % of ownership.
    3)  You can`t write off different amounts if you are 50/50.  You should square up with each other before filling the taxes.  Or change the % ownership accordingly.
    4)  This is where an accountant is useful.  Or due so web research.  Tax software helps here as well.
    5)  Keep good records of all transactions.  Set up a seperate business account if you haven`t done that yet. 
  • startsmallbizstartsmallbiz subscriber Posts: 1
    We`ve already purchased supplies from a business that won`t tell us its EIN.  The owner thinks that if we don`t have his EIN, we can`t report his income to the IRS and he can then dodge taxes.  Is there a way to track down the EIN of a supplier who refuses to provide it?  Is there a way to look up the supplier`s EIN online?
  • RebeckaRebecka subscriber Posts: 0

    We`ve already purchased supplies from a business that won`t tell us its EIN.  The owner thinks that if we don`t have his EIN, we can`t report his income to the IRS and he can then dodge taxes.  Is there a way to track down the EIN of a supplier who refuses to provide it?  Is there a way to look up the supplier`s EIN online?

    In most cases you do not have to issue a 1099 unless you have paid them more than $600 during the year. If they do not want to complete W-9 form, then either cancel the use of their services or deduct 28% for backup wittholding from their check on anything over $600. That will usually get them to give you their EIN.
  • infiniqueinfinique subscriber Posts: 0 Member
    This sounds a little like drop shipping. It's pretty straight forward. Just make sure you got a proper shopping cart and ecommerce shop front.
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