Thursday, October 30, 2008

A new, growing indie business? Get more info.

Hi Indies,

Here's some questions from an indie with a growing business. All his questions are already answered on my blog. This applies to lots of questions indies send in. The answers are here, just takes a little work on your part. Remember the SEARCH facility in the upper-left corner of the screen. I welcome all comments on better ways of making it easier for you to reference specific questions and topics.

To Kevin I say don't go to a tax pro knowing nothing. How will you know if the guy knows what he's talking about if you know nothing? Read-Read-Read! Start here tax pros - tax prep fees - tax returns (21) , My answers to your questions are below in red. The number indicates how many posts there are on that topic.

-- June

Hello June,

My name is Kevin, and I have been self employed since November of 2007. I started a reselling business out of my parents house in Austin,TX a few months after I graduated from college, and have watched it grow exponentially.

My business revolves around sales through eBay and my own website. In 2007 my taxes were almost nothing considering I had just started the business and recently graduated from school. In 2008 my business began to grow on a monthly basis, and my tax obligation grew with it.

I have considered finding an accountant to ask numerous questions, but since I found your site, maybe you can shed some light for me.

1) I am currently a sole proprietorship, from a tax perspective, would it make sense for me to become an LLC, incorporate, or become a corporation?
Look here business entity (21)

and here business entity -- incorporation (4)
business entity -- LLC (12)

2) Do I need to make quarterly tax payments, and if I haven't made any yet this year will I have to pay a tax penalty? In 2007 I paid less than 500 in taxes.

Look here taxes -- estimated (11)

3) Do you have any other recommendations or advice I could put to use to make my business as profitable as possible? Self-employed Tax Solutions

Thanks for your time!

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