Can someone translate this tax talk?

[isis24]

I'm beginning to start of thinking about opening a photography business. It'll be a small business - occasional location and in-home portrait sessions, and selling prints online. I went through businesslicenses.com to get all the forms I'll need to start up. However, I know nothing about taxes. I found this online, but have no idea what these things mean. Can anyone help me out with this, or give me any general info on what you all do with taxes?

[asysin2leads]

First, you didn't post a link to the file or quoted the document. Second, don't take what we say as legal advice. Talk to an accountant. That way you have it straight.

[isis24]

Oops, http://www.irs.gov/businesses/small/article/0,,id=98202,00.html. I just thought some of you who have started business would have some idea of which forms I might need.

[Converge]

Man, this is not so clear cut as your question. I am a sole prop. I registered with the state via my states online registration system and paid to register my fictitous name.

I then used quickbooks to track my profit and loss. Before the end of the first quarter, hooked up with the gentelman who does my yearly taxes and we figured out ESTIMATED quarterly federal and state taxes to pay. The first year is the hardest because you have no figures to go on as far as what estimates to pay quarterly.

Now if youre going to be S-Corp or LLC, then thats a whole other can-o-worms. Best thing to do, is pay to talk to a business professional who can answer ALL of your questions, get you started right, and even set up your Quickbooks for you.

Every town has someone like that who can help you.

Good luck!

[asysin2leads]

There are a lot of references on POTN to setting up a photog biz. You might want to do a search. My recommendation is to set up an LLC (Limited Liability Corp). Obviously, check this out with your tax pro/accountant. With an LLC, you can claim the income on your 1040 and avoid all of the other tax forms.....well, most of them.

[Converge]

you can always convert to an LLC in the future. If you going to test the waters, and maybe just make it a part time gig, Sole prop with liability insurance is the way to go. If things dont work out for you, its easy to close a sole prop.

But again, any business/small business tax advisor will go over all of your options for you

[isis24]

Thanks a lot for the advice, I think I'll find someone to talk with about it.

[pixelmama]

Oops, http://www.irs.gov/businesses/small/...=98202,00.html. I just thought some of you who have started business would have some idea of which forms I might need. Those are the forms you file when you file your income taxes, to start a business you need to make a choice on how you are going to structure your business then you need to file for a resale license with the State, in California that would be "Board of Equalization" it varies from state to state then depending on how your business operates you may need a city business license. If you know nothing about filing taxes and collecting sales taxes or operating a business I strongly suggest you meet with an accountant or get some books on the subject . When you file your IRS taxes if you use software like turbo tax it asks the questions and fills out the appropriate forms if you use quicken small business you can import the data.
Best wishes for a successful business.