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Does anyone know how taxes work for a small home business, I got my business lic, like today.. :) now I am thinking wow I really dont know how to go about that

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Asked by miss_nevin at 10:46 PM on Jun. 22, 2009 in Money & Work

Level 4 (42 Credits)
Answers (2)
  • Purchase QuickBooks for easy help.....
    All your business plans and marketing should have been prepared prior to filing for a business license. You should have had all your research done prior to starting your business.
    You will need to find out your state and federal tax laws for your small business. I believe you can begin with doing a Google search for your state's tax department.
    Good luck with your business.

    Answer by PrydferthMenyw at 11:02 PM on Jun. 22, 2009

  • Let me start by saying that I have over 15 years of small business accounting experience, and I have worked with several startups.
    I am anti-Quickbooks; it is not true double-entry accounting, it does not have a hard period close, and the reporting is mediocre at best. You can pick up a new copy of Peachtree on ebay for $20 or less; it is far superior to QB in just about every way.
    If you are in Illinois, I can walk you through the process. First, you need to go to and get your federal tax ID number (FEIN). Then you can get set up with the state and get incorporated.
    If you don't have business experience, I strongly recommed that you take a class for entreprenuers at your local community college.
    There are so many great resources available for startups. The best place to start is, and join your local Chamber of Commerce.
    Feel free to ask me any questions! -Robin

    Answer by rkoloms at 7:12 AM on Jun. 23, 2009

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