Starting Direct Staffing & Consultant Business, not sure what kind of taxes to pay
by kellietag, Window Shopper
- Created: September 11, 2013, 2:20 pm
- Updated: September 11, 2013, 2:41 pm
I recently started a side business (sole proprietor LLC in California)as I was being asked for my opinion and help with contacts I have within a field. So I started this direct staffing and consulting business in addition to my regular career. That being said, I will never have any employees, its just me myself and I. I provide a service either consulting or if I have someone that fits the employment needs of a company I will refer them to the company for direct hire and be paid either a consulting fee or a direct hire flat fee. My question is: what kind of taxes do I need to pay on this additional money earned? Will I need to pay taxes on the income earned from this business as if it were "typical" income from a job I hold; ie federal, state, SS, medicare, unemployment, SDI, etc? If so, is there a way to calculate the taxes that will be owed on this income so that I can set it aside instead of being hit with a huge amount owed when filing yearly taxes? Is there a "pay as you go" method to pay these taxes say monthly or quarterly? Or do I have to pay those kinds of taxes (I assume those are income taxes) or is there some kind of "business" taxes I am liable for? I am just not away of what kind of taxes I should be paying or taking into account. Any help is greatly appreciated. Feeling lost and overwhelmed...
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