fishmike[at]isu.edu (Alexis) wrote:

- quote -

Try SCORE and the Small Business Administration. The have a
seminar and other information which can answer most of your
questions.

Martha Mattehws, EA

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"Alexis" <fishmike[at]isu.edu> wrote:

- quote -

1. You may not need a tax ID, unless you intend on having
employee's and would need to consider being an LLC (limited
liability company) or incorporating, baring that, I belive
you can get by on your SSN.

3. You pay quarterly and/or when you file you will have a
penalty for tax you should have paid as you earned the
income. The IRS www.irs.gov website has a form/payment
vouchers for this purpose. The penality for not paying on
time or underpaying is small and if you are on a budget,
which could be considered a cheap no application loan.:-)

Anyway, there are other considerations such as local
ordinances regarding your particular business at your home
and local tax certificate/license requirements.

Be careful, in Los Angeles for example you pay on your gross
receipts, if in a transaction you receive a check for say
$1000 and pay $750 to the main office and keep only $250,
you pay city tax on $1000!

HTH

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Alexis wrote:

- quote -

You already have one and it's your social security number.

- quote -

Get IRS form 1040ES. It will have a worksheet to use, just
don't forget self employment tax (FICA).

- quote -

Quarterly, although a government "quarter" may not be what
you expect. Dates for payment are 4/15, 6/15, 9/15 and
1/15 of following year. The 1040ES will have approprivate
coupons.

Just don't you forget your state income tax too, if it has one.

Cheer$,
Harlan Lunsford, EA n LA

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- quote -

Unless you have a pension plan or employees, you already
have one--your Social Security number.

- quote -

A good starting point would be whatever your state tax rate
is, if one; 15.3% for SS and FICA; 15% for income tax. That
would be a good starting point.

- quote -

Probably quarterly, which isn't actually every three months
but four times a year.

You really should see a tax pro, one who deals with small
business, ASAP to get you on the right track and help you
avoid nasty surprises.

Carol
What can one expect of a day that begins with getting out of bed.

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ishmike[at]isu.edu (Alexis) wrote:

- quote -

You should get good answers from the professionals here, but
here is my unprofessional input (as a former self-employed
person).

1) No, you can use your own SS number.

2) This is all figured out when you file Schedule C.

3) You have to pay Estimated Federal and State taxes on a
quarterly basis. If you do not, you will owe too much at the
end of the year and be subject to underpayment penalties.

--
Vic Roberts

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- quote -

No. You will be a sole proprietor filing a schedule C.

- quote -


- quote -

Quarterly.

You also need to be thinking about how you will keep track
of your income and expenses. I suggest a package like
Quicken. Create a class called Contractor and use it on any
business related expenses. You will also need an income
category called Self Emp to record your income.

All freely provided advice guarantee correct or double your
money back

Frank S. Duke, Jr. CPA
Cincinnati, OH USA

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I am just getting ready to start a new job as an Independent
Contractor out of my own home for a company back east.I have
never worked like this before and I have NO idea of what I
am doing. ANY help or suggestions would be greatly
appreciated. Here are a few questions that I have right now
(I'm sure there will be more the farther I get into this
venture)

1. Do I have to have a tax id #?
2. How do I figure out how much to pay in taxes (state,
federal, ssi, fica) since my checks will not have the
taxes taken out of it?
3. How and when do I pay taxes (yearly, quarterly, monthly)

Thanks in advance
Alexis

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