Some questions about taxes and my new small business...???

angelleye

I`ve recently gone ahead and established an LLC for myself for online sales that I do.  2007 will be my first year of actually running like a business in which I`ll need to pay all necessary taxes and what-not.One thing that I immediately get confused about is how to handle filing everything at end of the year.  What I mean is, as an employee, I simply get a W2 from my employer which tells me exactly what amounts to fill in all the boxes on my 1040.  I`ve always used TurboTax for everything so it`s always been very simple.Now though, how will I get that W2 for my own small business so that I know what to fill in on my 1040?  As that entirely up to me to keep accurate records so that I know exactly what I made for that, or am I required to have a CPA put that together for me?I use Microsoft Money Home & Business and I`ve got reports that return everything I need...I think.  I`m just not sure if that`s acceptable when it comes to the IRS.Any information on this would be greatly appreciated.  Thanks!

angelleye

Ok, thanks for the info.  I`ll check out the links.MS Money has reports that seem to give me exactly what I need.  I`ve gone in and organized all my transaction categories the way I need.  Then I can simply run the Schedule C report and it shows me exactly what I should put into all the boxes on the 1040 Schedule C.  I hadn`t seen that before I posted this thread.Does that sound like it work for me?

SettingtheStage

You can`t replace nor can you spend an better money than hiring a CPA or good accountant to handle this for you.  They know of things you can deduct and ways to show a profit (or not) in order for you to have to pay taxes.  You will NEVER spend any better money on your business and they will keep you "out of trouble."  It sounds like you are very organized so it shouldn`t cost you a lot of hire someone to do it for you.  There`s a great saying from someone out there that says, "Do what you are good at and let those who are good at what they do, do them for you.  You won`t be sorry when you see how much money they can save you (probably their fee and then some)!

chrisrue

I`ll echo what`s already been said regarding the use of a good CPA or accountant. In our first month alone, using a CPA saved us roughly 5 figures...which paid for their fee & then some!
Don`t discount the worth that peace of mind can bring. Worry = drift, which is never a good thing. So if you can relieve some of your worry by handing off to a professional you trust, you can focus on the things that only you can do for your business.
As with any service provider tho...make sure you do a bit of due diligence. Check references & their credentials. Make sure they have a clean record with the state CPA board (if they claim to be a CPA). Obviously, someone with demonstrated expertise with your type of business is preferable.

angelleye

Ok.  All I`ve heard from anybody here and elsewhere is that I should just go ahead and get an accountant.  So, I`m not gonna play Mr. know-it-all here.  I`ll just go ahead and do that.It`s just a little aggravating because with the combination of MS Money and TurboTax it seems like I should be able to handle it without much of the worry that having a CPA would relieve.  What`s a guestimate on a basic range of CPA costs these days?

SettingtheStage

I live in the Seattle area and my CPA charges between $175-$225 per quarter and I have one employee.  Year end his fee is about $600. and that`s to do both my personal and business taxes.  He has saved me much more than  that over the years because he keeps up to date on all the tax laws and is aggressive, which I like.  Don`t forget that your business taxes have to be filed in March not in April.

yazminbarajas

SettingtheStage wrote:

You can`t replace nor can you spend an better money than hiring a CPA or good accountant to handle this for you.

I agree because hiring or outsourcing a CPA can save you more money and time, another thing is that they know what to do because they are far more better and experienced with what they do. You just need to find a credible firm to help you with that.


Yazmin, Accounting Marketing Specialist
Offshore Business Processing Small Business Accounting