The question might sound stupid to the business experts here but please bare with me.
I'm thinking of starting out my own commercial cleaning company but I want to know when do I actually start being responsible for paying taxes on the business? is it at the time I register the business and get a tax ID number? or is it actually at the time the business starts making money? Any help is greatly appreciated.
I believe you pay taxes when you make 'profits' you start paying taxes.
Usually when you start a business, you pay tax 'monthly' for your convinience.
So,
If you have no sales(Clean up services) to customers, you don't pay any taxes.
If you have sales, then you pay the 'sales tax', monthly.
You may pay some 'property tax' on your business related equipments(computer, cars, etc) at the end of the year, but as a start up, some of your equipments can be tax deductable.
Good luck on your business.
I believe you pay taxes when you make 'profits' you start paying taxes. Usually when you start a business, you pay tax 'monthly' for your convinience. So, If you have no sales(Clean up services) to customers, you don't pay any taxes.If you have sales, then you pay the 'sales tax', monthly. You may pay some 'property tax' on your business related equipments(computer, cars, etc) at the end of the year, but as a start up, some of your equipments can be tax deductable. Good luck on your business.
Well you really have a few issues to address! If you have employees then you will have deposit the payroll taxes (the frequency depends on amount of wages and taxes withheld along with the FICA taxes), next you will have State employees taxes to deal with, then you will have the State Sales Tax to deal with, you may also have local B&O taxes depending on where the business is located and finally you have the Federal Income taxes to deal with. The answers will vary depending on where the business is located, whether you have employeess or not, what your level of sale or revenue is etc. If you like you may email me directly and I can try to guide you. My email is accountingservicesinc@comcast.net
knightVision | Rising Star | 3/9/2009 - 11:53 am
accountingservi | Window Shopper | 3/14/2009 - 12:11 pm
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