Filed under Graphic Design Business HELP
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I’m starting a web/graphic design business in the state of Georgia, but what taxes do I have to pay and how? I don’t want to pay a tax professional.
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Starting a business? Then the best advice is to talk to both a tax professional and an accountant. Do you understand what liability insurance you need? Will you be incorporated? There are sooo many considerations.
Most businesses start out small. As a new business owner you need to know your federal tax responsibilities. This page (http://www.irs.gov/businesses/small/article/0,,id=99336,00.html) provides links to basic federal tax information for people who are starting a business. It also provides information to assist in making basic business decisions. The list should not be construed as all-inclusive. Other steps may be appropriate for your specific type of business.
What New Business Owners Need to Know About Federal Taxes
Is it a Business or a Hobby?
Selecting a Business Structure
Employer Identification Number (EIN)
Business Taxes
Recordkeeping
When Do I Start My Tax Year?
Selecting an Accounting Method
Checklist for Starting a Business
Establishing a Retirement Plan
Small Business Publications
References/Related Topics
Schedule C or C-EZ for the income and associated expenses, schedule SE to calculate self-employment tax for social security and medicare, and a form 1040. You’ll figure self employment tax, for social security and medicare, on the SE, and income tax and total tax on the form 1040.
Depending on your state, you probably also have to file there.
You should be making quarterly estimated payments, rather than just waiting until next year to pay when you file, or you’ll pay penalties. The federal form for quarterly payments is 1040ES.
You’d be wise to pay a CPA at least for an initial session to find out what records you need to keep, and what you can deduct.
You’ll have to pay taxes on your profits, so keep all your receipts. One solution would be to get tax software – like TurboTax, the premier edition that has small business support – and fill in all the forms. It’s pretty easy to use and you don’t have to pay any big fees. And, it will do your state taxes, too.