Fileing taxes?

[AAffordable]

I heard when you start a new business you have 2 years before you need to file taxes. Is this true? How long can you actually go?

Donny&Cynthia Moore

[alcpi]

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Someone correct me if I'm wrong, but its my understanding that taxes are based upon how much you earn not how long you've been in business. The IRS has a tax bracket system and no taxes are due up to a certain amount, the best thing to do is find a good accountant. Not just any accountant, but someone who really knows the system (ie. legal loopholes, laws, etc.) It can save you big $$$!

[Scaper-S2k]

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That is not correct, you will need to file regardless how long you have been in business. File no matter how little the amount is. You can theoretically show a loss for a certain # of years before the government sees a red flag (I believe 5 years). Hopefully you will show an increase each year.

The best advice I can give for taxes is to seperate work and pleasure. The quicker you can do that, the easier life will be....and taxes!

Save EVERY reciept used in anyway for the biz. If you needed toilet paper in your truck to blow your nose while working.....that's a biz expense.

Sooner or later you will have to pay up. Start out legally so you can sleep at night.

Good luck.

<<Don't Fear the Green!>>

[skyracer808]

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I think the best advise anyone can receive, business wise anyway, is:
"Make sure the IRS stays off your back." Do it right; do it legal and stay in business.

[George Deason]

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Personally I would avoid paying taxes until you build up your business to a point where you have productive commercial equipment that can actually earn you a reasonable living.

Then you can throw the evil empire a bone.

Don't tell my dad I said that!

[skyracer808]

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I agree. You can use the system and all its glorious loop holes to your advantage as a business owner. But you should still file with the "evil empire" <img src=icon_smile_wink.gif border=0 align=middle> and make sure all your ducks are in a row.

[Scaper-S2k]

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If you avoid paying taxes by not filing or trying to cheat, you won't have a business to build up! They don't play games and they don't care if you say "Uh, I just didn't know, I was trying to buy commercial equipment".



&lt;&lt;Don't Fear the Green!&gt;&gt;

[AAffordable]

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We appriciate the advice. Thank-you to everyone who gave their oppion.

Donny&Cynthia Moore

[rkbrown]

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Mr. and Mrs. Moore:

alcpi is absolutly correct. A good CPA is an invaluable investment. They are professionals and can give you professional advice concerning your tax situation. A good one will take extensive continuing education and will be well versed on the multiple changes from year to year.

P.S. Methinks Mr. Deason is yanking our chain a bit. <img src=icon_smile_big.gif border=0 align=middle>

Rob
Taybritt Lawn and Landscape Services