- quote -


I think it would be wise for you to go to a CPA for advice
in this area. There are many issues to consider in the
operation of a business, taxes just being a miner part of
them. Tax laws and interpritations of them do change every
year. You are an expert in your business, you need an expert
in taxes and business operations to help you be a success.

the money you invest in that professional advice will be
paid back to you many times over.

Bruce Raskin, CPA
Small Business and Individual Tax and Accounting Services

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"edesignsolutions" wrote:

- quote -

It depends upon the inherent integrity of that "complete
record." Merely saving web pages of activity on a CD which
list activity and also printing them out may not be
satisfactory to IRS, since you may be unable to show that
the numbers could not have been changed. It's very easy to
do. Therefore, paid bills and receipts are still important,
and any online disbursement which has no paper receipt makes
it more complicated. The examiner won't accuse you of
possible alteration, but this problem can increase the
hassle factor where the examiner may tactfully ask for more
receipts and other things to corroborate the integrity your
printouts on at least a sample basis.

Fred F.

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"edesignsolutions" <edesignsolutions[at]cinci.rr.com> wrote:

- quote -

If your salary withholding this year is more than you paid
total taxes last year (line 60 or 1040) you don't have to
pay estimates (110% of last year's tax if last year's AGI
was over $150,000), and pay the remainder with your returns
next April. Increase withholding to meet this "safe
harbor" if necessary.

You'll complete Schedule C for your free lance income and
expenses and Schedule SE for any Self Employment taxes due
on that income. Get a copy of each from www.irs.com to see
how it works. The same IRS site has many Publications ,
particularly for starting up businesses. ed

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"edesignsolutions" <edesignsolutions[at]cinci.rr.com> wrote:

- quote -


The easiest way to handle the tax problems is to hire a tax
professional.
It will be worth the time and money. They will let you know
just what to keep and what not to keep. Also, the fee for
the t/p is deductable as for as the business is concerned.

Missy Doyle

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edesignsolutions wrote:

- quote -

We could answer your specific questions -- but, considering
the number of them, and the likelyhood that there are some
important questions you've missed, you should see
an accountant. Some questions you've missed include
sales tax liability (some states tax services, and many
states tax custom products, even if intangible); whether
the state your ISP is located in has nexus for income
and sales tax purposes, and "retirement plans" you can
set up as the owner of a business.

- quote -


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edesignsolutions[at]cinci.rr.com posted:

- quote -

Short and sweet: Get thee to a professional.

While the income tax issues aren't terribly convoluted, your
peace of mind has some significant value. After a tax pro
sets your reporting requirements, estimated taxes, etc., you
will be both happier and smarter.

If you find the process clear and simple enough that you
feel comfortable going it alone, then you will be free to do
so, in future years. But start out right: Good advice from
a professional will be a sound foundation for the future.

Bill

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- quote -

Download a copy of Schedue C (Form 1040) "Profit or Loss
from Business" to get an idea of how you will be reporting
income and expense. Your net income/loss determines whether
or not you have taxable income/loss and whether or not self
employment tax is due on that income.

If you are starting or already have a small business and
need information on taxes, recordkeeping, accounting
practices, completing Federal business and employment tax
returns, and meeting other Federal tax obligations, there is
help available. Much of the assistance is free. The service
is called Small Business Tax Education Program, or STEP. Go
to Around the Nation for seminars in your area or check out
Tax Info For Business on the IRS web site. You can find out
more about this program for small business by referring to
Publication 1066 (PDF), Small Business Tax Workshop, or Tax
Topic 103 , Small Business Tax Education Program (STEP).

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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This year, I finally registered for a business identity, and
EIN, and decided to run a small business along side of my
full time job. I offer graphic design services, freelance
over the internet. I am unsure how to handle my taxes, due
to the fact that I do use the internet for business
transaction. I also, am clueless on how to figure out
quarterly taxes, and what paperwork I should be keeping. Do
I need to do quarterly tax payments? All my transactions are
through an online checking account, I have a complete record
of all transactions from my account, is this enough? Do I
figure in costs that I pay out, such as subscription to
freelance sites, and equipment costs?

I have been pulling my hair out, trying to swim through all
the self help guides, and I'm worried, as tax laws tend to
change from year to year, that I will miss something.

Any advice is truly welcome and appreciated.

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