Starting Business "check list" well sorta

[AndrewSA]

Okay, so I'm ready to start paying the tax man for my work! This is by no means exhaustive, but just some basics to get started and be official. Please let me know what I'm leaving out and what I might look into...

1. Get DBA from city
2. Get Tax ID # from TX Comptroller

So at this point I am armed and dangerous. The sales tax I collect on invoices get's sent to the comptroller quaterly. Is there anything else that they would need so I don't get in trouble?

I file my federal income taxes with a tax service, so I shouldn't screw up too bad there. I've been doing my "accounting" very simply to this point. Literally shoebox accounting. This is obviously very basic at this point, but I don't have a studio or employees, etc. So it seems to work okay right now, I'm just worried about any major things I'm doing wrong that would get me in trouble with the tax people.

1. I Save all receipts of stuff I purchase for my business. I total these and separate them into all the categories my tax guy tells me for business expenses. I've been paying sales tax for all this stuff. When I do the totals, should that be minus sales tax? Can my tax guy adjust for that when doing my taxes?

2. Invoicing customers. I total the income I get from my business (not including sales tax) and give that to my tax guy.


I realize there are lots of other things I can report (milage, donations, etc) which I do, I just didn't want to list everything. I'd lump this into #1 above as saving receipts to simplify things.

Is this basically how it works?

thanks!
Trev

[CobyPhoto]

Originally Posted by swinglight

1. Get DBA from city
2. Get Tax ID # from TX Comptroller

3. File your Business Personal Property Tax Rendition with the local Appraisal District
4. If you see ANY clients at your office location or (home) and are in an incorporated City or County, you will most likely be required to have an Occupancy permit.

When filling out paper work for the Tax Certifiate, answer questions HONESTLY. Don't let ego make you put down income estimates that could cause you headaches. Your payment schedule for Sales Tax is based on this.

Start keeping detailed and complete records of your expenses, materials and income! Receipt book for payments coming in, invoices for clients, Mileage - purpose of trip log etc. All of these things will be very important come tax time when your accountant files your return. (Or if ever audited!) Always CYA.

This is just the very basics that you have to cover by law.

CJ

[Steelsun]

Also, it's worth the time to talk to an accountant about self employment taxes and the like - depending on how much you make it will determine how often you have to pay the US Gov for your work.
A consultation should only run $100-200 or so.

Also check with your local SBA - they often have neat low cost ($40) workshops for new small business owners that is a real help.

[AndrewSA]

Yes, good idea..I've got that lined up...

Originally Posted by Steelsun

Also, it's worth the time to talk to an accountant about self employment taxes and the like - depending on how much you make it will determine how often you have to pay the US Gov for your work.
A consultation should only run $100-200 or so.

Also check with your local SBA - they often have neat low cost ($40) workshops for new small business owners that is a real help.

[Howard Barlow]

DBA comes from the county, not city.