US sourced income of a Non Resident Foreign National

Junaid — Wed, 22 May 2013 11:09:49 +0000

If I'm a US-non-resident foreign national and own a single membered LLC (a disregarded entity) and sales in US (through online channels) the product which is completely produced in my country (the country of residence), then the income which I gain through this sale is not considered as US sourced income, isn't it? see reference: http://www.irs.gov/publications/p519/ch02.html

1031 Exchange

Douglas J Anderson — Mon, 20 May 2013 19:18:42 +0000

Background: A Taxpayer can defer the capital gains tax liability from the sale of real estate if they subsequently use the sale proceeds to purchase new real estate of equal of greater value. 1) The Taxpayer has 45 calendar days from the time he/she sells the relinquished property to identify his/her intended replacement property(ies). Failure to identify replacement property(ies) within 45 calendar days will result in the 1031 exchange transaction being disallowed and reconstituted as a taxable sale. 2) The Taxpayer must complete his/her 1031 exchange transaction by the earlier of: a) 180 calendar days from the sale of all the relinquished property b) Due date of the Exchangor's Federal income tax return for the tax year in which the relinquished property was sold, including filing extensions. Note: The Taxpayer is unable to extend deadlines under any circumstances 3) Title to the exchange property must be vested exactly the same as the relinquished property. This is only a snap-shot of the complexities involved in these types of transactions. As such, this article is not intended to replace the advice of a CPA.

ebay taxes

CARPARTS — Thu, 11 Apr 2013 21:12:46 +0000

I'm a new car dealership selling new car parts on eBay. Do i have to collect sales tax on out of state sales and then pay them to my state. I know i have to for sales within my state but i don't seem to find any kind of official documentation that states i do not though everything else i read seems to say i do not. Please Help Thanks

Already an LLC - how to choose how to be taxed

lucasmccoy — Tue, 30 Apr 2013 16:35:50 +0000

My husband and I have already formed a business as an LLC and we are each 50% owners. I am applying for a federal tax ID number and have the option to choose sole proprietor or partnership as the type of entity. Which is a better option since we are married and both equal owners?

Do i have to pay a quarterly estimated tax?

JerryAAA — Tue, 21 Feb 2012 02:15:58 +0000

Hi All, I just started my business in December so i am as new as they come. I have been reading books non-stop and am currently learning about taxes. My question, is my business required to pay a quarterly estimated tax (1040-ES)? My business is: -A SMLLC -Located in NY -Online Electronics retailer. -Estimated $24,000 annual revenue. Any help is appreciated!

Business in US & Brazil with US Partner & Brazilian Partner

timdorf — Fri, 06 Aug 2010 12:01:42 +0000

I am an American, living in Brazil. I registered a company (LLC) in Ohio in 2007 and claimed it 2007 & 2008, then inactive in 2009. It is set-up as a single owner.
Now, I am registering a company in Brazil. I have a Brazilian partner. Our company represents foreign companies in Brazil. Currently, we have one US company that we represent, but will be adding more soon.

I am not sure of the best way to handle the taxes or how to;lin- the companies together. For example, any commissions are set-up to be deposited in my US account (my primary personal accounts are in the US and my bank does not charge for international wire transfers). I fear that I would have to pay taxes on the entire amount, because it looks like only income for me. I would like to add my partner to the LLC and to the US bank account, but my partner does not have a Social Security number and may not be able to travel to the US for at least several more months. Of the commissions deposited in the account, a portion will remain in the account as our 'US business account', some of the business account money would be sent to a business account in Brazil. Some will be divided 50/50 for my partner and myself. However, any funds wired to Brazil, may also be subject to taxes again in Brazil. I thought that it would be better to leave the US LLC as 'inactive' and only use a business bank account in Brazil, because it would be easier to documented the money coming into Brazil, however, I have many business expenses that need to be claimed on my taxes in the US, so I really cannot just abandon the US LLC.

For me, it seems complicated, but I am sure somebody can provide direction for us.

Nate Orr - Question re. Sales Tax for Online Business

Nate Orr — Fri, 26 Apr 2013 13:25:09 +0000

My name is Nate Orr and I've read recently about changes to sales tax for online business. I was wondering how this may impact sellers who offer products for sale on online auction sites like Ebay where we may have buyers from different states all with different state sales tax. Does anyone know how the new rules may impact sellers or where we can find state sales tax information in one place?

Sales Tax

StaceyH — Fri, 07 Jan 2011 12:16:56 +0000

My husband and I have a raw petfood biz based in MN, we are starting to branch out to 3 other states. We have a website, the customer orders, and we deliver the product...do we collect sales tax based on those states rates and guidelines???

Help!!!!!!

How do LLC losses affect personal income taxes?

wliu0532 — Sun, 07 Apr 2013 07:50:16 +0000

I started a LLC in California with my friend, and I own 35% of the LLC. What is not clear to me is how losses affect the taxable income of the LLC members. Is there a limit to how much can be deducted for an LLC loss? For example, If I made $100k at my day job, but the LLC lost $100k (I have 35%), how much can I deduct from my personal tax? 35K? and my taxable amount becomes 65K? And any limitation on the deduction? Thanks in advance

W2 Tax for with old address

tqoe — Mon, 25 Mar 2013 14:30:17 +0000

I have a small business that provides classes for children at several child care centers. One of these schools pays me via 1099 Misc. Before the end of the year, I changed the business address. Since my business with the child care center had been completed, I hadn't updated them with the new address, not thinking of the tax forms. I now have a 1099 with the old adress. Is it important to have them go back and correct it or can I file it with the old address? I'd like to do the right thing without causing this other business extra work.

Business tax certificate or exemption

hed — Wed, 10 Apr 2013 23:14:39 +0000

The city of Los Angeles says all business must had a business tax certificate or an exemption if operating within the city. I have found their business tax certificate application form but... I have read on their sight that they are currently allowing exemptions for new businesses within the first and second years of business if they begin operating withing certain dates and bellow a certain threshold in business income. I'm pretty sure i will not be making anywhere near the threshold...and so i think I may qualify for the exemption. but aside from the application form i meantioned above I can't find another for an exemption that doesn't require a corporation or charity or trust. as i am starting up as a sole prop. does anyone know if its the same form or where i can find the application?

When is it time to separate home-business taxes from personal filings?

dantam8 — Fri, 12 Apr 2013 13:51:17 +0000

I do work as a freelance writer as a side business, writing for the media and providing copy to organizations. I do business under my own name and file schedules C and SE along with my 1040 each year. I am starting a new home-based business that is writing related, but will involve the selling of a physical product. This will require more overhead and expenses than the freelance writing business. I will also market this new venture under a brand name, rather than my own. What is the best way to handle the tax situation for the new business? Would it be advisable to operate this as a part of my existing freelance business and file along with my personal taxes, at least until I see if it will be successful? Or should it be kept as a separate business from the start? Thanks

Do I need to file small business taxes if I have not actually launched the business yet (just registered the LLC)?

carltb42891 — Mon, 08 Apr 2013 23:49:02 +0000

Hello, I registered my company a few months ago and I have not started the business yet (over that time I was working on building the product). I'm new to this and was wondering, do I have to file taxes even though I have no sales? Thanks!

general partnership taxation vs sole proprietor taxation.

hed — Wed, 20 Mar 2013 01:08:10 +0000

I'm looking into setting up what I guess would be a hobby business from home. But I am stuck on wheather to go with a sole prop and do it on my own. Or a general partnership with my spouse so he can be more involved with the business than occassionally volunteering. I have been told more than once that a general partnership has more comlicated taxes than a sole prop and we will end up paying more/higher taxes. And that I should stick to the sole prop. but when i looked up the two the general partnership didn't seem as different as I thought. But I am still unsure that I am fully understanding the difference. I understand to a point about them both being "pass through taxation". What I want is to choose the best option for us. if the taxes of a general partnership is essentually the same as the sole prop, I would like to involve my husband. But if it would cause more trouble for Him or both of us (he already has a full time job) then I will just run the business on my own as a sole prop. I guess what I need is a side by side compariosn/explanation of the taxation of the two for a complete dummy. :) if anyone could help me understand the differences I would be greatful :) thanks.

Independant Contractor

Johanna — Wed, 26 Dec 2012 20:53:40 +0000

I work 20 hours per week part-time as a cleaner for a cleaning company in Maryland. I make $15 per hour and considered an independant contractor for the company. Can you tell me how much money or how much of a percentage I should be saving each month to not have to owe the IRS at the end of the year?

EIN registration

EBenson4185 — Tue, 09 Apr 2013 16:44:47 +0000

Hello, If I open a restaurant that will serve alcoholic beverages, when registering for my EIN do I check Yes on the question "Does your business sell, or manufacture alcohol, tobacco or firearms?" Since I am serving alcoholic beverages, I assume the answer is no, but people are paying for the alcohol so I am unsure how to answer this question. Your help is much appreciated. Thank you : )

General Tax Questions

neonreefs — Wed, 27 Mar 2013 18:36:37 +0000

So Ive got a few questions about taxes. I am starting up a small coral propogation (coral farm basically) that is run from my home. I know basically what to do to collect sales tax, but in regards to the actual taxes on the profit of the business I am confused. This is not my sole source of income by any stretch of the imagination. The first year in operation Id expect to turn somewhere between $5000-$7500 in profit. My main source of income is from my day job as a teacher. With that being said; heres a few specific questions/topics I could use some help with. 1. When it comes time to file my income taxes next year would I do two separate returns? One for the business and one for my personal income from my job? 2. I know that only the profit from the business is taxable, but how do I account for the other 7.5% of ss tax? I know if you are "self employed" and file using a 1099 instead of a W2 then you have to pay the entire 15% of the ss tax and something called a "Self employment tax" How does this work with the business? 3. I suppose my basic question is what is the simplest/lowest tax way to file the taxes next year for a very small business that has hopefully made a small profit by then? thanks in advance everyone!

Checklist

tonynkris — Thu, 28 Mar 2013 16:05:22 +0000

What is a basic checklist of items needed on a business when filing taxes. my bookkeeper has not been helpful.

SMLLC and EFTPS To Pay Estimated Tax Payments

qwerks — Sat, 30 Mar 2013 03:20:16 +0000

I've created a SMLLC this year and its about time to pay estimated tax payments. I already have an account with EFTPS that I've been using to pay estimated taxes for my sole-proprietor business. So the account is tied to my SSN. Since SMLLC is a disregarded entity in the eyes of the IRS, can I continue to pay estimated taxes via EFTPS using my account tied to my SSN and my personal checking account? I see that EFTPS allows me to create a business account. Should I create a new account using the LLC's EIN and tie it to the LLC's bank account? Would that strengthen the LLC from a legal standpoint? What about paying estimated sales tax for Illinois. Do state treat LLCs the same way as the Feds? Thanks!

Taxes for Multiple Home-Based Businesses

elexsys — Sun, 31 Mar 2013 02:19:56 +0000

Hi. I have two home-based businesses that I make very little money from. I also have rental property. Currently I am living with my parents so I don't claim any of the home for my businesses. However, I do use the electricity and a small portion of the house for an 'office'. How do I report both businesses and the expenses for each? Do I have to do separate returns or can I account for both businesses on one return...? Thanks

Tax info on income from sales and/or commission from foreign company

HochMS — Fri, 22 Mar 2013 05:07:15 +0000

Can anyone provide direction to the IRS tax code about: 1) paying taxes from sales to foreign companies 2) collecting commission from foreign companies? TIA.

Home based business tax information/questions

MSCheath — Tue, 05 Mar 2013 00:46:55 +0000

I recently launched my first LLC, out of my rented apartment in Tampa, FL. I have several questions. How much room must be dedicated to a business to constitute a write off? Florida has no state income tax? How do I file? Can I deduct for depreciated equipment? Can someone lead to a good resource (simple, plain, complete and short), to find out about taxes in FL for an LLC.

Forming an LLC for Forex trading

Lafaso870 — Fri, 12 Nov 2010 19:16:45 +0000

Hello Folks ....i was wondering if forming an LLC for forex trading
helps to get taxes lower.....i dont know if it goes that way or
not...But is there any benefit for trading under an LLC other than tax
brackets if any...
would appreciate some discussion that
thanx

Sales Tax Over State Lines

MIT_MAN — Wed, 09 Jun 2010 12:14:50 +0000

There seems to be a lot of confusion about sales tax for internet sellers. I currently collect sales tax for Michigan since my small business resides in Michigan. My concern is not collecting tax for out of state buyers. My store sells Parrot Toys and business is exploding. I want to get ahead of this issue before it could potentially become a problem.

When I physically go out of State to Ohio for shows, I collect sales tax based on their rules but online sales seem to be a bit more confusing regarding taxes.

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Internet Sales and Taxes

mlittles23 — Tue, 13 Apr 2010 11:34:17 +0000

Can any explain how sales tax work in the US when it comes to Internet based sales? I'm hearing they don't apply in one area, and then somewhere else they say they do?

Need help for Website Design Company Taxes

jrlund1006 — Wed, 06 Mar 2013 02:13:04 +0000

Question 1: Mississippi Sales Tax? I run a website design company in MS and I have a LLC. I just started making sales this year of 2013 and I heard I did not have to charge sales tax unless my product is tangible. People have told me a website and hosting a website a non-tangible product. Am I exempt from charging sales tax to my clients? If I do need to charge sales tax how much do I charge 7%? How much will I have to pay back to the State all 7%? When do I pay this money to the State? Monthly? Yearly? What is the website I can use to make payments online? --------------------------------------------------------- Question 2 Other Withholding Taxes on Income? I only hold back 25% of each payment and keep in a savings account so I can pay it back at when I do taxes at the end of the year of 2013. Am I suppose to pay withholding taxes quarterly or wait to the end of the year? Someone told me they got charged interest for waiting till the end of the year to pay taxes that they were holding in a savings account. I assume I need to be holding back 25% on all of my business income but I just don't know where and when I am suppose to pay this. Please help and thanks in advanced for all your comments!

Am I required to use my fictitious business name when receiving checks?

ak2 — Sat, 16 Feb 2013 01:15:33 +0000

I work as a web designer, and some projects I would prefer doing under my real name, rather than under a fictitious business name, because I know the client in person, or the client is outside the scope of my target market. When they write checks to me, can they write checks to my real name, or am I required to receive checks under my fictitious business name only? When filing taxes, would I report this income under Schedule C for my business, or as other income of some sort? Would really appreciate advice. Thanks

What's the best way to depreciate a business vehicle?

BobF — Thu, 07 Feb 2013 18:24:34 +0000

I've basically filled out the schedule C for my wife's home day care business (sole proprietorship) with 2 exceptions, both relating to depreciation. We bought a van (used) for transporting children that is always used in the transport of children unless I'm going out to gas it up. Not a lot of miles put on it, so I know it's in our best interest to take a depreciation expense on it. I thought about a section 179 depreciation, but I'm worried that will cost us more in the long run. Between us, we earn roughly $125,000 a year and have high dollar amounts in itemized deduction mostly from mortgage interest (I don't know when the AMT will rear its ugly head on us). The other is house depreciation. I understand we can expense it, but it will decrease our basis in the house. Is this in our best interest? Thanks in advance for any help you may provide.

Question on how does Sales Tax work for resellers selling to state govts

fcamerica — Thu, 08 Nov 2012 21:16:22 +0000

We are a Delaware registered LLC company and will commence selling to various state Govts as resellers. The goods never come to us as our supplier from one state will ship it to a state govt department in another state. We do not want to go thru the hassle of registering in every state, collecting sales tax, filing returns, paying sales taxes & then filing for refunds. We are new and confused about this and would appreciate if someone can throw some light on this. Is there like a Multi state Exemption certificate for sales tax?? Jack

TAX Question

kingdom — Thu, 25 Oct 2012 21:05:55 +0000

Hi my name is James sand I am the owner of a small street wear brand called Kingdom Clothing co. I have been in business a little over year. I work on my business part time because I also work a full time job / I am also a full time student. My sales have been slowly but surly increasing throughout the year and the brand is picking up steam. My question is how do I file my taxes as a sole proprietorship the correct/ legal way since I am not currently drawing any income off of my business. Thanks in advance.