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Are you saving money for taxes?

Discussion in 'Publisher Network' started by dshah, Sep 28, 2006.

  1. #1
    Just wondering if you guys started piling it up for taxes, just starting this month
     
    dshah, Sep 28, 2006 IP
  2. kevin7654

    kevin7654 Peon

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    #2
    I'm actually dealing with this same issue. I have money set aside to pay taxes, I'm just not sure how to do it. I'm an LLC so do I pay taxes when I transfer the funds out of my LLC account into my personal account?

    How is your business registered?
     
    kevin7654, Sep 28, 2006 IP
  3. lorien1973

    lorien1973 Notable Member

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    #3
    You have to file a return for the LLC too. You need to find a way to either hide or use your income to lower your tax burden.
     
    lorien1973, Sep 28, 2006 IP
  4. kevin7654

    kevin7654 Peon

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    #4
    I thought the LLC was 'transparent' and had no tax liability?
     
    kevin7654, Sep 28, 2006 IP
  5. lorien1973

    lorien1973 Notable Member

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    #5
    You still have to file a return for it.

    The tax liability may pass on to your personal return (I don't know, for sure), but if the LLC profits, it is part of your net income and therefore, taxable. I'm an S Corp. I file a return for the business; but the income (profit or loss) flows onto my personal return, where I actually pay the taxes each year.

    If you don't know about any of this, I'd REALLY contact an accountant right away. I only pay about $500/year to my accountant and she takes care of the returns, gives me advice on reducing taxes, etc.

    These are basic questions an accountant could answer very easily.
     
    lorien1973, Sep 28, 2006 IP
  6. ArcticPro

    ArcticPro Banned

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    #6
    If you make money you have to pay taxes, if you a lot of expenses to run that business you can use them as deductions, but like Lorien said you'd best contact an accountant to make sure you do things by the book if you arn't sure.
     
    ArcticPro, Sep 28, 2006 IP
  7. Red Thunder

    Red Thunder Peon

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    #7
    I've been saving money for taxes since my first check, which is the proper thing to do unless you are a established business.
     
    Red Thunder, Sep 28, 2006 IP
  8. alsjforever

    alsjforever Guest

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    #8
    How much do you guys save?

    I'm sole proprietor

    I save 42% (35% federal, 7% CA state tax)

    Am I doing correctly?
     
    alsjforever, Sep 28, 2006 IP
  9. bigrollerdave

    bigrollerdave Well-Known Member

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    #9
    42% is about as high as it will go. You will prob see that you saved too much :). I've been trying to save but I got a little behind lol. My accountant is getting everything back on track though.
     
    bigrollerdave, Sep 28, 2006 IP
  10. webmasta

    webmasta Well-Known Member

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    #10
    U don't file for a LLC, but the money you make passes on to you so you pay it

    I pay quarterly for what I made last year, kinda just starting to save this month for what I made with YPN
     
    webmasta, Sep 28, 2006 IP
  11. alsjforever

    alsjforever Guest

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    #11
    my cpa told me that I don't have to pay quarterly.. even if I'm late, he said he could tweak it make it without penalty..

    so I'm saving 42% for taxes.. I'll probably be paying next year February or something..

    I'm getting $$$ back on entire tutition, textbooks, hosting fees.. Yay !! couple 10k's there
     
    alsjforever, Sep 28, 2006 IP
  12. slava

    slava Peon

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    #12
    You need to contact an accountant and possible a lawyer. Depending on how your LLC was setup you pay taxes in one fo two ways.

    Either the income of the LLC is passed down to an individual or group of individuals and you pay taxes as if its all personal income, like you would in a sole proprietorship or partnership.

    The alternative is you pay corporate taxes on the income of the LLC, and you deduct any employee pay (including your own) from the LLC income, then seperately file personal income tax on your personal income that is paid by your company.
     
    slava, Sep 29, 2006 IP
  13. PGZ

    PGZ Peon

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    #13
    My accountant told me I need to go LLC but I thought a S-Corp was better since I was making so much and the dividend that the S-Corp would pay to me is only taxed Fed and State with no SS ect.

    I elected the LLC cause they advised it but now I have to pay quarterly taxes for the LLC and pay tax on anything I take from the LLC itself.

    I would like to hear from you guys which way you have done this to avoid the most taxes you have to pay.

    What have you done and what are the pros and cons of doing so.

    PGZ
     
    PGZ, Sep 29, 2006 IP
  14. hdpt00

    hdpt00 Peon

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    #14
    You can tax an LLC as an S-Corp. Also, unless this is your first tax yr making money online, you need to pay quarterly tax estimates or you'll get a penalty.
     
    hdpt00, Sep 29, 2006 IP
  15. dastuff

    dastuff Peon

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    #15
    I make close to 4k a month through my job and have found that taxes take out about 30% at that level. So 42% seems a bit highbut whats the worst that can happen, you get a nice fat bonus come april.

    Basically I would save about 30% per month for taxes, and then deal with any other expenses as they come.
     
    dastuff, Sep 29, 2006 IP
  16. D3Si

    D3Si Peon

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    #16
    how do i have to pay tax, I'm just by self.. not business it's just small site..
     
    D3Si, Sep 29, 2006 IP
  17. tlainevool

    tlainevool Guest

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    #17
    Usually you would just have to file a Schedule C. But like always, seek out a professional accountant, its worth the money. They often pay for themselves by finding deductions you would never think of.
     
    tlainevool, Sep 29, 2006 IP
  18. houstonian

    houstonian Peon

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    #18
    Hey guys! as for me, net income monthly is x,xxx.xx , so how many percent should i save for tax? 20%?
     
    houstonian, Sep 29, 2006 IP
  19. alsjforever

    alsjforever Guest

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    #19
    alsjforever, Sep 29, 2006 IP
  20. mjewel

    mjewel Prominent Member

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    #20
    The percentage you need to pay depends on your total taxable income. 42% would not be enough for a high bracket.

    You must pay quarterly installments equal to last years obligation or you will get a penalty. If you had no income last year, then you can wait.
     
    mjewel, Sep 29, 2006 IP