I run a Web Design service - What should I do about taxes?

Discussion in 'General Business' started by nameonthecake, Apr 12, 2007.

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  1. #1
    My taxes for 2006 have already been taken care of. I was working for a company.

    Now I am running my own web design service and am wondering how much I need to take out for taxes, etc. How should I handle it so when it comes time to file I am not. Should I take a certain percentage out and put it into a seperate account. Any help would be great.

    Thanks
     
    nameonthecake, Apr 12, 2007 IP
  2. tke71709

    tke71709 Peon

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    #2
    Talk to an accountant, the cost will more than pay for itself in savings at the end of the year.
     
    tke71709, Apr 12, 2007 IP
  3. rcj662

    rcj662 Guest

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    #3
    If you make over a certain amount youw ill need to pay every 3 months. This is in the USA.

    You pay quarterly taxes on what yiou expect your income for the year will be.

    You alos are suppose to collect your state tax for any work you do. Not sure how it works for online right now as it is up in the air.

    If you work for companies in your area you bill them and then add state tax to total and pay that to state besides quarterly payments.

    The quarterly payments are estimated taxes for the year broke down into 4 payments.

    april 16
    june 15
    september 17
    january 15

    They change each year because day that payment is due might be sunday. Figure the 15th of each month listed to be safe.

    then yoiu alos have to file regular taxes each year. Make sure to file both state and federal quarterly payments or you could wind up with fine or penalties that cost you more than you owe.
     
    rcj662, Apr 12, 2007 IP
  4. rising4ce

    rising4ce Peon

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    #4
    I second the recommendation of seeking the advice of a qualified accountant. There are so many issues relating to taxation you can get yourself into a lot of trouble.

    Make sure to inquire with them about your legal form of business. I assume you are currently operating as a sole proprietor, but depending on your circumstances their could be some tax/liability advantages to forming an llc or an "s corp"...
     
    rising4ce, Apr 12, 2007 IP
  5. adrian88

    adrian88 Peon

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    #5
    get a CPA to help you out
    that can save you A　LOTｏｆ　ｈｅａｄａｃｈｅｓ
     
    adrian88, Apr 13, 2007 IP
  6. w3bmaster

    w3bmaster Notable Member

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    #6
    Talking to an accountent is the best solution ....
     
    w3bmaster, Apr 13, 2007 IP
  7. UneekTT

    UneekTT Peon

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    #7
    As stated, very good advice - and thanks a ton for typing all that out for me, because somebody had to say it - lol


     
    UneekTT, Apr 13, 2007 IP