Tax is a levy on the profits of your business, and can include federal corporate tax, individual tax, sales tax, payroll tax, and their state tax counterparts. Knowing a bit about tax will help you to choose the correct corporate structure and better run your business.
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162 views
Is Form 5471 required if No income for C corp and Israeli subsidiary?
Delaware C Corp start up spent $$ over two years before folding. No income and all money spent in Israel writing software. No compensation to founders. Must we file 1120 and Form 5471? Need cpa or can ...
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2answers
370 views
Can we use the tax classification of “disregarded entity” for our LLC if all owners live and work outside the US?
We have registered a US LLC to help us get a US bank account. We are based in the UK, however we have some suppliers we import from in the US and we have clients who will purchase from us in the US. ...
2
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1answer
145 views
Can we set NewCo's initial valuation at zero?
Background: Company A has developed a software product. Revenue is about $8K per month; margin is about 75% (after royalties). Debt owed to angel and family/friends investors is about $550K. The ...
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2answers
118 views
Splitting up revenue
My partner and I decided to split up a partnership (things just weren't working out between us). We have some apps on the market that are still generating revenue, we decided the best thing to do was ...
2
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1answer
117 views
Chart of Accounts for Games
I'm currently running a small mobile game startup (about 3 people). We spend a lot of money buying apps from the Apple app store and Google Market to check out what sort of games are out there. What ...
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3answers
127 views
Sole trader loan
I am thinking of becoming a sole trader. I know as a sole trader I am liable for any debt the company has. Can I place money from my personal account into the business account to start it off? I wish ...
3
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2answers
187 views
Sales Tax on Digital Purchases
Are you required to charge sales tax for digitally downloaded content? (e-book, video, etc)
Location: Florida
4
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3answers
260 views
How do I choose an accountant for my small business?
I want to register a small work from home business and do yearly audits. I have found a tax consultant and we exchanged more than dozen emails. After I asked him about where he got his certification ...
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3answers
166 views
Taxes on freelance/consulting work
I am not sure how I should be paying taxes for freelance/consulting work. With some of my clients I just signed a consulting agreement, and an NDA and then I invoice them. They pay me via credit card ...
4
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2answers
102 views
83b Election: is it important?
I'm reading through Do More Faster and there is a chapter in there that talks about an 83b election and how it is ESSENTIAL that you do it when you create your startup. It seems to save you a ton of ...
2
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1answer
115 views
Are shipping charges taxable?
I purchase products and resell them, adding services that relate to computers and technology. For example, I might purchase a laptop, install custom software and settings according to my customer's ...
3
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2answers
205 views
How to declare income when most/all your income comes from Paypal?
How do I declare my income if all of it comes from paypal ? Most accountants in Portugal (where I live and where this company will be based) don't know how it works... Do I declare it only when I ...
3
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2answers
958 views
California taxes for single-member LLC: did I get them right?
After reading and reading about taxes, I think I've grasped which taxes I should pay and when to pay them. Still, it'd be really great if someone could confirm I have it right. I will appreciate any ...
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1answer
241 views
Do you pay self-employment taxes as an S-Corp?
I worked as a consultent for a number of years, just doing regular old programming gigs. While I was doing this I did my taxes as a sole-proprietorship. I had to pay marginal tax and self-employment ...
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2answers
152 views
Sole Developer setting up an offshore company for tax reasons
I am self-employed developer resident in an EU country. Currently working on a product that will be eventually be sold online. Over the years I’ve noticed that several smaller UK software companies ...
3
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4answers
150 views
How do I know if a potential new employee is a “long-term” unemployed person?
This pertains to the president's proposed new tax breaks for businesses. PBS Newshour
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1answer
148 views
Tax issues for a Canadian being paid by a US company
I'm starting a job with a US based startup, and I'm trying to understand the tax situation that I am now in.
What are the advantages between being a Sole Proprietor here in Canada vs incorporating? I ...
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5answers
570 views
Sole Proprietorship vs LLC
From what I read there are two basic types of business recommended for a single person business (in the US):
Sole Proprietorship
LLC
My wife is looking to start a business for blogging/selling ...
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4answers
1k views
As a founder/shareholder/officer in a startup, do I pay myself as an employee(W2) or contractor(1099-MISC)?
I've looked around, but can't seem to find a straightforward answer for this.
I am one of 4 founders in a start-up incorporated as a C-corp. 2 of us work full-time on the start-up, and so far have ...
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1answer
131 views
Taxes for DE LLC
I am based in Texas but my company is registered as an LLC in Delaware. If I sell subscriptions to web-based software tools (SAAS) do I need need to collect taxes and for which state?
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2answers
76 views
New Photography Business
I am looking into starting a new business for photography and wanted to see if theres a clearly defined list if things I can write off for it. I'm assuming I won't make any money for a while either ...
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2answers
93 views
Legal Requirment for Starting a Business in Austin, TX?
I am starting a business from my home, and will operate it as a sole proprietor. What do I need before I can begin?
The business itself is a computer consulting firm meant to help small-medium ...
0
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1answer
101 views
Going with a CPA or Enrollment Agent
My business partner and I are currently looking for an accountant for our growing business. At the moment we have met with two different accountants. One was a CPA and one was an Enrollment Agent. We ...
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1answer
172 views
When do we need to become an official company?
So I'm starting a new venture with a friend of mine. Basically, we are not going to be looking for seed funding, or really any funding for that matter. We are going to be up fronting the costs to our ...
4
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1answer
217 views
Foreigner opening online store in the USA
I'm from Europe, don't plan to move to the USA
I will open an ONLINE store ONLY (no physical stores)
Goods will be imported from Europe
Shipping will be handled by the fulfillment company
I am ...
4
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2answers
1k views
Avoiding complicated EU VAT rules for SaaS company
I am in the UK and am in the process of setting up a SaaS product which people will be able to purchase online by monthly subscription.
I have been researching the VAT rules for supply of electronic ...
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1answer
752 views
Accounting for Depreciation in QuickBooks
Can someone point me to some examples of how to handle depreciation in QuickBooks (2009)?
To give an example, I buy a computer for $2000 in 2009. I choose "Equipment" as category. I duly report my ...
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1answer
81 views
I don't understand tax obligations on options
Here's the situation:
two founders each own 50% of the company
angels / VCs / FFFs are about to invest
the company will set up a 10% options pool for new hires
When a new hire starts, how do taxes ...
2
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1answer
165 views
Tax information from a Independent Contractor in the UK
I run a mobile gaming company with my brother located in California, we just contracted a couple independent contractors(ICs) from the UK to do some art for our games.
Usually, when we contract an ...
2
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3answers
171 views
Getting Amazon Affiliate fees in California
Amazon recently announced that it will cease paying affiliate reward to its California associates. As a startup very reliant on affiliate fees, is there any way to get around this?
Background: We ...
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1answer
139 views
Withholding Requirements
I started an LLC in NY with LegalZoom back in January and have not been paying much attention to the "Withholding Requirements". I don't have employees and I'm not getting paid, do I need to file ...
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2answers
321 views
Started S Corp in 2010 but did not make any money til now
I started an S corp April 2010 but the project was put on hold. We didn't file the 1120S or 2253 that were due 3/15/2011. This month we are starting to work on a project which will start to bring ...
2
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1answer
562 views
What is the difference between PAYG and PAYE?
I am trying to understand the two different tax-system: Pay as you Go and Pay as you Earn. What is the difference between the two?
2
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1answer
327 views
Does a foreign corporation have to pay any US taxes if it has a web server in the US?
Recently we are starting our business and need to create our website. Finally we decide to purchase virtual private surver provided by Bluehost, because it's way better than ones provided by asian ...
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1answer
100 views
1099 required for payment?
I run a small website. I sold $100 of ad space to a local business. They asked me to send them a 1099 so they can set me up in their accounting department. I'm not sure how this works or why I need to ...
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3answers
272 views
Can I register an umbrella business to “hold” two other businesses?
I have 2 "businesses" which I would like to register under 1 umbrella business for the sake of taxes.
First I have a web/apps business (1 website, 2 additonal apps, soon to be 3) that isn't ...
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2answers
294 views
Can I start a company in India while working in the USA on an H1B?
Can I start an internet-based company in India, while working in the USA on an H1B visa? Will I be able to incorporate in India and pay taxes? Is it allowed? What are my options?
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3answers
114 views
How do I register to pay taxes?
I've started an LLC in quarter 2, did some work and got paid. It was a great amount of fun! Now the terrible part. I need to pay taxes.
I'm okay with that. I knew the day would come. But the question ...
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2answers
58 views
Contractor to small business
I've been working as a contractor for a company for a few months now but I haven't signed a contract or a 1099 form, I just receive payment on services due when an invoice is submitted. If I start a ...
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3answers
269 views
Interviewing / hiring accountants for a startup
What are some good questions to ask when hiring an accountant for an early stage startup?
The goal is to prepare the company for VC/Angel funding. As a first time entrepreneur I have no idea how ...
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1answer
61 views
Tax Question on Commission website
If an online business is simply the middle man(ebay) do they have to report their sales as the total sale price of the items sold or just their commission?
For example, Ebay charges buyer total sale ...
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3answers
222 views
Are mobile phones and service contracts a business write-off?
I purchased a smartphone to help me conduct my business (mobile hotspot, email, access company intranet, etc.). Previously, I did not own a cellphone, personal or business. Additionally, I signed a ...
2
votes
4answers
98 views
sales tax on photography
I am a photographer and new to the whole sale tax forms. If I have a sale for $500 to photograph an event, but $100 dollars of that was used to buy prints --- do I list that $100.00 as a deduction on ...
4
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1answer
282 views
Freelancing: Traveling & Taxes
I'm a German citizen, but have been living in various EU and non-EU countries. I usually do remote freelance work. Since I don't live in Germany, I don't see the point why I should pay the high taxes ...
2
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2answers
124 views
legal requirements to open a service on the web, that requires payment
i'm a newbie in the business world, and i'd like to submit a couple of questions to you.
First, i live in Italy.
Suppose i want to fire up a website, and part of its services are under payment. What ...
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1answer
55 views
Investment money and Tax
Myself and a friend would like to start a new company.
I will be doing development work and my friend will invest money.
Our company isn't yet registered, but my friend would like to transfer a ...
1
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2answers
117 views
Collecting Use taxes
An article on businessweek got my attention today. From the headline:
A Texas software vendor we have
purchased from for years got audited
by the California State Board of
Equalization ...
3
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3answers
574 views
International tax on digital products for a US company
I'm a developer in the US (Maryland) with an LLC and an application that I would like to sell through my website, delivered via download. I do not intend to ship physical goods of any sort, my ...
3
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2answers
419 views
Is there a tax liability for reverse vesting founder stock/units?
A friend and I formed an Oregon LLC in 2008 for an online business. Now we're up and running and both working on it full-time. Now we've both moved to Texas and want to re-form as a Texas company ...
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2answers
188 views
Most tax beneficial way to incorporate as a contractor
I am currently contracting as a software engineer on a W2, and I am thinking of incorporating. Which is the most tax beneficial way, an LLC, sole proprietorship, S-Corp?
Keep in mind that at this ...
