Small Businesses and Taxes

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Contents

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US taxation system

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US Federal Taxes

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Who is Self-Employed?

http://www.irs.gov/businesses/small/article/0,,id=115041,00.html

If you are in business for yourself, or carry on a trade or business as a sole proprietor or an independent contractor, you generally would consider yourself a self-employed individual. You are an independent contractor if the person for whom you perform services has only the right to control or direct the result of your work, not what will be done or how it will be done.

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Do I Need an Identification Number?

http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html

You must have a taxpayer identification number to operate your business. This is generally your social security number, or an individual taxpayer number. However if you have employees, and in some other circumstances, you will need an Employer Identification Number.

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Filing Requirements for the Self-Employed

http://www.irs.gov/businesses/small/article/0,,id=115043,00.html

As a self-employed individual, you may be responsible for completing multiple tax forms, depending on your type of business.

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Useful Forms and Publications

A collection of relevant forms and publications related to understanding and fulfilling your filing requirements. - http://www.irs.gov/businesses/small/article/0,,id=115044,00.html

2006 Form 1040 Schedule C-EZ, Net Profit From Business (Sole Proprietorship) - http://www.irs.gov/pub/irs-pdf/f1040sce.pdf

You may use Schedule C-EZ instead of Schedule C only if you:

  • Had business expenses of $5,000 or less.
  • Use the cash method of accounting.
  • Did not have an inventory at any time during the year.
  • Did not have a net loss from your business.
  • Had only one business as either a sole proprietor or statutory employee.

2006 Form 1040 Schedule C, Profit or Loss From Business (Sole Proprietorship) - http://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Form 1040-ES: Estimated Tax for Individuals - http://www.irs.gov/pub/irs-pdf/f1040es.pdf

  • Because you generally will have no withholding taken from your self-employment income, you may need to make quarterly estimated tax payments. For information on how to make estimated tax payments refer to Form 1040-ES.
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Operating a Business

http://www.irs.gov/businesses/small/article/0,,id=99930,00.html

Learn about the various responsibilities associated with operating your own business. You will find many topics, such as: types of business taxes that may apply, how to structure retirement plans for your employees, deducting the cost of running your business, and much more.

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Websites

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Books

  • The Business of Being an Artist (Daniel Grant)
  • Minding Her Own Business: The Self-Employed Woman's Essential Guide to Taxes and Financial Records (Jan Zobel)
  • Self-Employed Tax Solutions (June Walker)
  • Sphinx Legal: How to Start a Business in...(there are guides specific to many states)
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US State Taxes

Each state has its own requirements for obtaining sales tax permits and other business licenses. In addition, some cities require certain licenses. Below are some links to state-specific information on small business taxes

Small Business Administration Website links to tax info for for all states

California - Sales & Use, Property, and Special Taxes - http://www.taxes.ca.gov/index3.html

Connecticut - Connecticut Online Business Registration Application - http://www.ct.gov/drs/cwp/view.asp?a=1433&q=265880

Florida - Florida Department of Revenue - http://dor.myflorida.com/dor/businesses/

Georgia - Georgia Department of Revenue - http://www.etax.dor.ga.gov/salestax/index.shtml

Iowa - Iowa Department of Revenue - http://www.state.ia.us/tax/business/business.html

Louisiana - Louisiana Secretary of State One Stop- http://www.sos.louisiana.gov/comm/fss/fss-index.htm

Massachusetts - Mass.Gov: Getting Started for Businesses - http://www.mass.gov/?pageID=mg2topic&L=3&L0=Home&L1=Business&L2=Getting+Started&sid=massgov2

Michigan - Michigan Economic Development - http://www.michigan.org/medc/jumpstart

Minnesota - Minnesota Department of Revenue - http://www.taxes.state.mn.us/business_taxpayers/index.shtml

Nebraska - Nebraska Department of Revenue - http://www.revenue.ne.gov/business/bus_regist.html

Nevada - Nevada Department of Revenue - http://tax.state.nv.us/index.htm

New York - NYC.gov - http://www.nyc.gov/html/sbs/nycbiz/html/starting/registering.shtml

North Carolina - North Carolina Department of Revenue - http://www.dor.state.nc.us/downloads/sales.html (this links directly to Sales & Use Tax forms and certificates - YOU need form NC-BR).

Ohio - Ohio Department of Taxation - http://tax.ohio.gov/channels/business/business_start-up.stm

Pennsylvania - Online PA100 - http://www.pa100.state.pa.us/

Utah - State Tax Requirements - http://tax.utah.gov/business/requirements.html

Virginia - VATAX Online for Businesses - https://www.business.tax.virginia.gov/BusinessLogin.jhtml

Washington - Washington Department of Revenue - http://dor.wa.gov/content/doingbusiness/

Wisconsin - Wisconsin Department of Revenue - http://www.wisconsin.gov/state/core/business_forms.html (link includes forms and info from www.wisconsin.gov and www.revenue.wi.gov)

State Sales Tax Forum Thread - State Sales Tax Information - http://www.etsy.com/forums_thread.php?thread_id=5501589

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Australian taxation

Some useful links:

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