For Those Who Do Their Own Small Biz Taxes...

Business By CookieMakinMomma Updated 18 Sep 2009 , 4:30pm by dogwood

CookieMakinMomma Posted 15 Sep 2009 , 1:47pm
post #1 of 14

I am starting up a small, sole proprietor cookie business. Just me, and probably part-time. It will be run from my home and I would like to just report my profits on my personal taxes. At this stage in the game I simply won't be making enough to validate finding a CPA and would like to do everything myself.

My problem is... which d@#n forms do I need?? I have scoured this site, as well as the IRS site but my head is swimming and my eyes may be permanently crossed. Do I need a schedule C or schedule SE... or both? What the heck other forms might I need? Like I said, it's just me, no employees, so I'm finding it difficult to follow the IRS's website.

I know there are tax websites that will do it all for me (i think) but my reason for looking at taxes now is so I can tailor my bookkeeping to make it easier come april (or quarterly, or however else I'm supposed to be doing it). I know there is accounting software that will do basically that, but I don't want to spend the money if I can help it.

Any tips for this devoted do-it-yourselfer would be greatly appreciated!

13 replies
-K8memphis Posted 15 Sep 2009 , 2:25pm
post #2 of 14

As in the 'any tips' will help scenario.

In Tennessee, I do my (book) store's sales & use tax online at my state's sales & use tax page.

My brother called recently and he is setting up a small business and I looked on Indiana's site and sure 'nuff--same same. You just register like you would on any website and it's pretty self explanatory.

I have not checked for Ohio's but I'm sure they've got a similar setup.

In 10C (TN) you had to have your FEIN and your state sales tax number in order to register--I mean you gotta get the ducks lined up but none of it is difficult and after that it's easy peasy. 10C makes it easy for you to pay them--yah think???!!! icon_lol.gificon_lol.gif

http://www.business.gov/states/ohio/

http://www.tax.ohio.gov/divisions/sales_and_use/index.stm

CookieMakinMomma Posted 15 Sep 2009 , 3:22pm
post #3 of 14
Quote:
Originally Posted by K8memphis-

10C makes it easy for you to pay them--yah think???!!! icon_lol.gificon_lol.gif




phew! and I was worried I was going to have to force them to take my hard-earned money! aren't these guys the nicest?

thanks for your input. "just use the online places" seemed too easy to me, but maybe (hopefully!) I'm wrong!

-K8memphis Posted 15 Sep 2009 , 3:38pm
post #4 of 14

I think those two links have everything you need.
That's all I needed in my state.

Good luck.

chelleb1974 Posted 16 Sep 2009 , 12:02am
post #5 of 14

CookieMakinMomma,

As far as your federal taxes are concerned, in the scenario you described in your post, you would be a Sole Proprietor and would file Schedule C with your Federal Form 1040. As for state taxes, usually the Schedule C is sent in with the state return (and there is a line and possibly a seperate Schedule C just for your state).

You can go to the IRS website, download the Schedule C and it's instructions. This should be helpful. The Schedule C is filed annually with your 1040, however, if you are making a profit, you should send in estimated tax payments each quarter. Look at Form 1040-ES and it's instructions.

Please feel free to PM me if you have any questions. I am an accountant and this is what I do for a living.

~Chelle

-K8memphis Posted 16 Sep 2009 , 1:16am
post #6 of 14

Oh gosh--forgot about federal taxes--we're non-profit, I'm a church bookstore.
(duh Kate)

CookieMakinMomma Posted 17 Sep 2009 , 8:31pm
post #7 of 14

Thank you K8memphis and chelleb1974!

dogwood Posted 18 Sep 2009 , 3:44pm
post #8 of 14

I've was told when I got my TIN that I didn't need to file taxes unless I made a certain amount of money annually ( I believe they said $10,000). Does anyone know about this side of the tax issue?

-K8memphis Posted 18 Sep 2009 , 3:50pm
post #9 of 14
Quote:
Originally Posted by dogwood

I've was told when I got my TIN that I didn't need to file taxes unless I made a certain amount of money annually ( I believe they said $10,000). Does anyone know about this side of the tax issue?




Hey Elaine! It's Kate from cake club!

But I don't know about your tax issue. I can't see our fair state turning down any tax revenue. icon_biggrin.gif

It's raining like crazy here & I wanna go get some cake stuff but I don't wanna get wet--is it pouring in Millington? I get to make a cake for my son's gf's b-day.

chelleb1974 Posted 18 Sep 2009 , 3:57pm
post #10 of 14
Quote:
Originally Posted by dogwood

I've was told when I got my TIN that I didn't need to file taxes unless I made a certain amount of money annually ( I believe they said $10,000). Does anyone know about this side of the tax issue?




As far as I know, any amount you make needs to be reported on a Schedule C (if you're a Sole Proprietor) as well as your expenses.

dogwood Posted 18 Sep 2009 , 4:01pm
post #11 of 14

Hi Kate,

It was pouring this morning. I'm at work (downtown) right now and it's very dark out there can't tell if it's still raining or not. I would imagine you're pretty close to the cake store. I would go for it if it was me. Wish I could go with you. icon_smile.gif

I'm always confused about this tax stuff. I put in what I've spent and what I make when I do my personal taxes but I don't know if I'm supposed to do something else or not. I don't include my cake stuff anymore though since my cake stuff is not strictly legal. I just include my soap, lotion and oil products.

-K8memphis Posted 18 Sep 2009 , 4:10pm
post #12 of 14

Yeah what Chelle said--oh I remember something--how much you report has to do with the frequency of payment. That's what that is. So I'm not positive of the actual details but maybe it's make 10k or less and you can pay once a year. I pay quarterly. Big taxpayers pay monthly.

http://www.tn.gov/revenue/faqs/salesandusefaq.htm#5

Check out #'s 5, 6 & 9 especially.

-K8memphis Posted 18 Sep 2009 , 4:14pm
post #13 of 14

I'm just wanting to float a boat to Kroger-- icon_lol.gif

I thought you mighta been at work--

Umm, yeah I think taxes are 'sposed to keep us gue$$ing huh icon_biggrin.gif

dogwood Posted 18 Sep 2009 , 4:30pm
post #14 of 14

Thanks for the info K8 and Chelle.

By the way K8 I just found out it's puring outside.

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