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How do you go about doing your taxes when you start a new business?

I just started a new business with AmeriPlan and I was wondering how I go about taxes.If I don't make that much this year,will I still have to pay in alot of taxes to the goverment come Febuary of next year?

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Tia23sb

Asked by Tia23sb at 1:30 PM on Apr. 24, 2009 in Money & Work

Level 4 (39 Credits)
Answers (3)
  • Contact the SBA (small business administration) and SCORE (the association of retired business people). They can help you with your business plan, tax planning, etc. Depending on your corporate status (LLC, S-corp, C-corp), you may also need an accountant to make sure that you do not get hit with penalties and interest.

    As an aside, are you aware of the fraud cases against Ameriplan? I hope that you did a lot of research before getting involved. Some information is here: http://sao.mt.gov/news/20061024Ameriplan%20Settlement.html
    And here: http://www.insurancejournal.com/news/west/2006/11/22/74554.htm
    rkoloms

    Answer by rkoloms at 1:42 PM on Apr. 24, 2009

  • First off - if you earn less than $600 you won't have to claim it.
    I am also with Ameriplan. At the end of the year you will get a 1099. That will have all your earnings on it. You should also keep copies of all your utility bills, phone bills, business cost reciepts (fees and sales aids) and keep track of your mileage. Then I would suggest you go to an accountant just to make sure everything is right. If you choose to do them yourself make sure you get a program for small business owners. You will be able to deduct part of your utility and houseing costs as well as so much per mile, business fees and sales aids cost before you have to pay any taxes.

    I'm running out of room - So pm me if you have any questions.
    SabrinaMBowen

    Answer by SabrinaMBowen at 2:10 PM on Apr. 24, 2009

  • The above poster is partially correct. I am a tax preparer. If you receive a 1099 with the income that you received you will file a schedule C. I doubt that it would be complicated enough to have to see an accountant. Most of the folks doing this work actually make very much, so you won't have much to deduct.

    Next, per IRS rules, companies are only required to generate a 1099 if you make more than $600, but the rules say that doesn't negate your responsibility to claim the income. That's up to you.

    If you plan on claiming "home office" expenses, be sure and look on the IRS website and request a dvd that you can view and listen to in order to learn how to claim them properly. If audited, and small businesses often are, esp. if you claim outrageous expenses, then these would be knocked out and you would owe. Do it right, you'll be able to sleep better at nite. But frankly, its not that hard with a small business.
    lifeasinoit

    Answer by lifeasinoit at 8:52 PM on Apr. 24, 2009

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