So I don't goof myself next year

[Hoody]

I should probably ask a CPA this but figured I would try here first.

Start my business, draw a salary and invest the rest back into the company(LLC). Now even though I'm drawing a salary as my income, am I required to claim all business revenue as my income, or I can keep them separate ?

 

[Brian R]

Generally it's part of your salary if you take draws to pay yourself.
But anything invested back into your business is a write off so it's a wash.

I know it's like that for a sole P but of course, talk to your CPA.

 

[Hoody]

And what ALL can be wrote off ?

 

[floorguy]

that would be for a CPA tot ell ya....

quick example...i figure mine at the end of year...i have to many highs and lows to try to figure a w-2 type thing soooooo

say the biz grosses 100k.......and at the end of year when we seperate expenses out, it shows i spent 30k on personal, and have 65k worth of biz expense...and there is alot of shit you can write off..but alot you cant ..(cant take my damn eat out off :x :x :x :x ...unless its an over night/2 day job or out of town)

anyway it shows a 5 k profit

soo on personal if it shows i should get say 6k back, but i havent paid taxes/w-2...then they take it out of that and i only get 1k back

then i pay the biz taxes on the 5k...


just a rough example with rounded numbers....but thats cuz i am small and have spots where my paycheck/w-2 would only cover taxes...so we keep track till end of year...


but as always.....ask your CPA how they want you to do it

 

[Brian R]

In CA you can write off only 1/2 your lunches if they are business related.

But you can start a lunch networking group and pay dues (which equals the amount of the tab) and then you can write off 100%
This is a Letip thing.

Yes, always ask your CPA because every state is different.



Generally speaking, if you can use it in your business it "should" be a write off.

 

[bob vawter]

i had the answer....very simple...
jus SPEND more money than you...
MAKE!

 

[Hoody]

i thought u were gonna say the shoe box thingy bawb.

PS Corky I thought you knew everything.

 

[bob vawter]

the shoe box thingy

that too....but you need TWO BOXES......!

 

[Brian R]

i thought u were gonna say the shoe box thingy bawb.

PS Corky I thought you knew everything.

I do...but the IRS gets all butt hurt when I don't disclaim my views. 8) shiteatinggrin 8)

 

[Hoody]

Thanks for the help. If anyone has anymore insight I would appreciate it. I won't be talking to a CPA until around February-March-ish. Just trying to get a grasp on things.

 

[Art Kelley]

Don't forget travel expenses to Mikefest. If you drive I think the IRS allows $.50/mile for car expenses plus hotel etc etc etc.

 

[Jay D]

Have a Cpa do your taxes this year. While you are there you will have time to ask a few questions about how you should do the business thing this coming year. It will cost you about $200 but it will kill 2 birds with one stone. Just make sure you put away about 10K+ for taxes NEXT YEAR depending on how much you do. 65K-100Kgross receipts will require approximately that much taxes. Ask for receipts and Save all the receipts. Sit down once a month and do your books for sales and expenses, You'll know were your moneys going that way. Don't run out and buy a new car or get in debt on anything if you can avoid it. Debt should be for a good used Tm/van or recently rebuilt/New bawb genie. Just get going and don't get too complicated your first year.

 

[Brian R]

Hoody, listen closely.

First it's a good idea to get incorporated. An S corp you can have yourself as an employee. Your company pays an $800.00 a year flat rate (that's CA...maybe less in your state) and you get paid as an employee.

You are less liable and you don't have to pay yourself that much...plus you don't have to worry about what to write off...except on personal stuff like med bills etc.

Get on QuickBooks and use a CPA that deals with QBs.

You still have to keep all your business receipts for proof etc.

Just remember no matter matter what to keep your personal finances separate from your business finances....not matter what business structure you end up doing.

Have a business checking and a personal checking. You CPA can hook you up with a cheap payroll company and pay yourself a small salary and allow your business to pay for whatever it uses...including rent, vehicle payments, fuel etc....if allowable

There is soooo much more. lol

 

[Brian R]

Plus under a corporation you can have as many DBA's (doing business as) as you want

example
Hoody Enterprises Inc

DBA
Hoody's Carpet Cleaning Company

DBA
Hoody's strip club and wing ding

Etc

 

[bob vawter]

lets jus say for example that there were DOGS in the hotel where yous was STAYIN'...
and you shit yor pants...
is THAT deductable?

 

[Brian R]

God I hope so.

 

[bob vawter]

not that ANY of that ever happened.............

 

[Brian R]

mmm hmmm

Did you have a Rorschach in your trousers?