Sep
10
First Time paying business taxes?
Filed Under Utah Business
Gabe C asked:
I opened a Photography L.L.C. Business. I have only made about $2,000 for the year. I take pictures of cars so that the owner can put them on the internet. I didn’t collect state taxes from my one contract. Because it is a classic car business and the owners says that I don’t collect taxes from him, if he is going to sell the cars??? This is what his CPA advised him. How do I pay my taxes. I’m the only one who works in the company. I was paid as a private contractor from the classic car dealer. I live in Utah. It’s as a home base business. I don’t want to get rocked from an accountant, if I don’t have to. Any help would be wonderful. Thanks.
I opened a Photography L.L.C. Business. I have only made about $2,000 for the year. I take pictures of cars so that the owner can put them on the internet. I didn’t collect state taxes from my one contract. Because it is a classic car business and the owners says that I don’t collect taxes from him, if he is going to sell the cars??? This is what his CPA advised him. How do I pay my taxes. I’m the only one who works in the company. I was paid as a private contractor from the classic car dealer. I live in Utah. It’s as a home base business. I don’t want to get rocked from an accountant, if I don’t have to. Any help would be wonderful. Thanks.
Also, I work at a company where I get paid salary 30k per year I do the photo business on the side. I don’t know if anybody needs this information to help out.
Ryan
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4 Responses to “First Time paying business taxes?”
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i believe if you are the only person under llc company then you can still file a schedule c with your tax return. if you have a partner then you wont be able to.
I am in a similar situation. I have a regular job that does takes out taxes, and I program computers on the side, which i started in 2007.
First, you must have a w-2 form . The person who paid you the money will provide you with this form. His CPA probably already made on up, and all you need to do is call and request that.
As far as where and how you file :
HR Block was who I first went to. They started out at 77 dollars, and then said I would have to pay 330 dollars to file with them !
I went to WalMart and bought Turbo Tax business deluxe. It costs about 88 dollars. It is a disk that you run on your computer, do it yourself taxes. I am really happy with the product. It was very self expalanitory! It basically asks you a lot of questions, helps you find expenses, and then determines your risk of being audited, which I thought was awesome .
Dont forget to figure up your deductions. For example, the printer, camera, paper, and ink are all expenses that are deductable for you, since you started this business this year.
Best of Luck to you, and if you have any more questions, feel free to message me !!
Good Luck with your new business!!
Why did you waste money on an LLC? That needlessly complicates your life when it comes to state filing requirements in most cases.
Whether or not you should have collected state sales taxes depends upon state law. That type of service is taxed by some states and not by others.
How you’ll file your Federal return will depend upon how you elected to have the LLC taxed. If you’re a single-member LLC just file Schedule C or C-EZ to account for the business income and expenses. If the net is $400 or more, attach Schedule SE to calculate the self-employment tax.
If you opted to be taxed as an S-Corp (BAD idea in this case) then you probably should get professional help.
Without knowing what state you’re in, I can’t tell you what to do there. Hopefully you’re not in CA or NY…
For $ 2,000 I would not worry about sales taxes.
As a single LLC member you have two choices to file:
as a Schedule C or as a C Corporation.
File as a Schedule C, deduct expenses directly related to your business, and pay the self-employment tax (social security).
If Utah has an income tax, file as resident and show the net income from the Schedule C.