New business taxes for event planning home based business
by wubell, Window Shopper
- Created: October 16, 2013, 8:20 pm
- Updated: October 17, 2013, 7:54 pm
Hi, I just started an event planning business this month in Texas (Brazoria county) and I am kind of lost with the whole tax thing. I work from home. The IRS said I need to file forms 940, 944 and 1065 in the next two years but I am just confused on where to go next. I signed up for EFTPS and the state comptroller's office for a tax permit. I just received my first payment of $500 and I'm trying to find the best way to go about things since I can't afford an accountant and must do things by hand right now. I don't sell items, except floral pieces in my business, which I know are taxable. I only sell consulting and coordination services. I am an LLC and the IRS has classified me as a partnership for tax purposes. Since I do receive wages since I am one of the owner's (husband and wife team) and must pay for business expenses, my own salary etc, what type of taxes do I need to pay? I have no employees. Do I need to sign up for unemployment or worker's compensation? I understand that I will need to pay estimated taxes on a quarterly basis from self-employment taxes if I meet certain criteria. I also understand that I will need to pay income tax with my annual tax return. What I am trying to see is if I need to pay sales tax, the 8.25 in Texas on a coordination service. I did not recommend any food vendors or etc to the client, just consulting and planning services. There is no clear description on the state website. Also, are there any other taxes I should be aware of that I need to pay? I know I don't owe any excise taxes since I don't fit into any of the listed categories. What would you all suggest about purchasing quickbooks the accounting and payroll software? What is this about using a cash or accrual accounting method and how does it apply to my business? I have been reading but the language on the IRS website and other websites is a little confusing.
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