Urgh Taxes

It's coming up to that time of year again in the states Tax time. How do you handle income from your sites? Sadly I've gotten burnt a couple of times because I filed it as personal income which made me owe more in taxes than if I'd filed as a business.

It'd like to setup a DBA (doing business as) just to have a separate set of accounts and reap the tax benefits of that. It's cheap enough only like $25 with to register with my county.

Ideally I'd incorporate but then that's a pain in the arse unless your pulling down enough money to have a lawyer shuffle all the paperwork around (board meetings, etc) and an accountant to figure out the latest tax loop holes.

How do you handle the income?

 

You are permitted to make a certain amount per month (or is it per year?) before you have to pay taxes. The amount escapes my memory right now.

 

It you net more than $400 per year from your business you have to file athough you might not have pay anything according to: WikiAnswers - When do you have to start paying taxes and is there a certain age you have to reach or do you have to make a certain amount of money

If your not netting at least $400/yr or $33/mo your doing something wrong. :p It's a pain in the ass to have to file even if you don't have to pay though.

 

Get it as an LLC?

I dunno about you guys, but my tax guy is a former IRS agent. Costs me next to nothing since he knows the tricks in the books.

 

I setup my LLC back in March of this year and have to claim for the first time as a business. I don't even know where to start! :speechless:

Anyone have some tips on where to research this?

 

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Thanks Nick.

Would it be better to use a tax service and/or accountant to help when first starting out? If so, any suggestions there?

 

Arny, have you considered using tax software, such as TurboTax for example? TurboTax® Small Business Tax Software, Tax Deductions & Tax Preparation

 

s-corp. Don't find it much of a hassle unless you count having to go to the account 5 times a year, and that florida just raised unemployment tax from $8.40 to $100.30

 

Thanks Nick!

I've used the TurboTax software for my personal taxes in the past. So, I'm kinda familiar with how to use them. $100 for the software...seems like a good price to get my taxes done.

 

This is the only thing that makes me happy I don't make $400 a year. I suck at monetizing my forum.

 

The good thing is that we can at least deduct the cost of the software

But, I agree...this is the tough part of things. Hopefully the TurboTax software will make it easy for me