Need a tax info site

Discussion in 'General Discussion' started by pegwinn, Jul 23, 2004.

  1. pegwinn
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    pegwinn Top of the Food Chain

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    Hi, Just started a new job where I am now legally an "independent contractor". I need to get educated on how to handle my income tax. I mean, I been doing the standard deduction for years. Now, my "employer" doesn't take out taxes, ssecurity, nada. Thanks all.

    Oh yeah, for anyone who says "get a cpa", plan to, but figger tis best to know the language even if I don't speak it.

    FOR JIMMYNYC: NEED A "MY TWO CENTS SMILEY" :banana:

    mANY tHANKS
     
  2. Moi
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    Moi Active Member

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    If you find such a tax site, tell me. We're struggling with the same issue too!!!
     
  3. freeandfun1
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    freeandfun1 VIP Member

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    As an independent contractor, you might want to form an sub-chapter "S" corporation. You will file with your state the corporate status and then, when you file for your EIN (Employer's Identification Number) with the IRS, you will elect to file under the sub-chapter "S" status. This allows all profits to flow through to you at individual income tax rates instead of corporate (you avoid double taxation). Furthermore, by forming a corporation, you are protecting you and your property (home, etc.) from any lawsuits that COULD come from your contracting.

    Another option, which I am not as familiar with, but from what I understand, is basically the same as an "S" corp except for a few minor rules, is a Limited Liability Corp (LLC).

    Here is a link that might help.

    Good luck and remember, it all depends on how much money you think you might make and how big this contracting business could become.
     
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  4. pegwinn
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    pegwinn Top of the Food Chain

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    Thanks fo the start. Basically I am in sales. Never done that before. I get a minimum if I meet certain conditions, and commission. Nothing deducted. The distributor told me that if I didn't have the discipline to keep good records, then I should just bank 10-12% of each check for taxes. Or I could deduct everything I touch so long as I use it to do my job. So I am trying to figure out if I can deduct my truck payment, insurance, personal health insurance, gas, mileage, etc. Thanks again. Any other sites to study you come up with, please lemmie know.

    :beer:
     
  5. freeandfun1
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    freeandfun1 VIP Member

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    you can deduct auto expenses up to certain levels. The IRS allows "X" (not sure of the current amount) cents per mile for normal wear and tear plus they allow you to deduct gas, insurance, etc.

    Be careful, some insurance companies will jack your auto insurance up quite a bit if they think you are using the car for "business" purposes. So check into that too. If you think you can make some decent $$, then I would suggest getting Quickbooks for your finance recording. It is a really simple and easy to use finance and accounting software program specifically designed for small businesses. It might run ya around $150 for the SW, but it will be well worth it. They will also provide you with a limited amount of information and advice on taxes, etc.

    Bush talks about "S" corporations a lot as that is what most small businesses are. As people enter the world of "contracting", such as you are, they get a better understanding of why the media's broad brush of "corporate" bashing is not accurate. Technically, MOST small businesses and independent contractors in America are "corporations".

    There are a lot of good websites to get advice from. Google works wonders!

    Take care and again, good luck!

    FREE :beer:
     

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