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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566 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 ...
9
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3answers
7k views
How many times a year do LLC's have to file taxes?
If I start an LLC where I am the only owner, do I only have to file taxes once a year (without getting penalties of course)?
9
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3answers
5k views
Simple Overview of LLC Pass Through Taxation
I understand that an LLC filed as a Partnership to use Pass Through taxation is not required to pay quarterly taxes. In this scenario, the owners pay taxes on the dividends received.
But how does ...
9
votes
4answers
301 views
Contractors Vs Employees
As a UK based tech start up working on a social app, what are the pros and cons of hiring contractors on a full time basis to build the app, against hiring the same people as employees?
Edit:
Let me ...
8
votes
3answers
500 views
How do minors legally start a business?
I am a fifteen year old Web and iPhone developer. I'm looking to get apps published on the App Store under a business name. So, this leads me to a few questions. (I already have a bought membership).
...
7
votes
1answer
154 views
Which country to incorporate web startup in?
If we have a web startup originally targetting users from country A, but the majority of users end up to be from America, is it sufficient to have the company incorporated in country A?
Additionally ...
7
votes
4answers
390 views
Tax laws when trading to the US from europe
What are the tax laws regarding sale of a SAAS to US companies when you are UK based? I know you dont have to charge VAT but would you need to file a US tax return or charge US taxes?
6
votes
3answers
200 views
Is a 50/50 equity split without 50/50 control a doable and wise thing?
I've found a great partner for my second tech startup, and want to structure this one better than the first, which made money but eventually got ugly due to poor choices my younger self made along the ...
6
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3answers
1k views
Online Sales Tax: location based on transaction server, shipping address, CC, or location of purchaser?
Online sales tax seems overly complicated. From what I've read, it seems like most states collect sales tax if your company has a physical presence; however, location on both ends is badly defined:
...
6
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4answers
685 views
Alternative to QuickBooks for a small (1 man) S-Corp? [closed]
I'm currently using a 2009 version of QuickBooks Pro for my S-Corp accounting needs. They recently sent me a letter "suggesting" I upgrade to the 2012 version ($200+) as many of the features of the ...
6
votes
1answer
886 views
C Corp vs LLC Taxes
I'm trying to figure out the various taxes taken out for a C Corp vs LLC. Single-member/ shareholder. (C Corp has more deductions.)
C Corp: (1) Tax on profit (after deductions), (2) Payroll tax ...
6
votes
3answers
281 views
What are your greatest tax season pain points?
As we think through new features to offer our small business and entrepreneur users, we're looking to the coming tax season as the time of year when most prefer not to have the distractions from their ...
6
votes
3answers
651 views
Formed Single Member LLC. What are pros and cons of filing form 8832 to be taxed as a Corporation?
I recently formed an LLC for my software side business. The income generated is between 5-10k a year. I have also filed and receivied a Federal EIN.
I think I intend to take money out or "pay myself" ...
6
votes
1answer
700 views
Is there really a New York “Capital Tax”?
Henry Blodget wrote this inchoate rant in which he claims that his startup had to pay $10,000 in extra tax in New York for having too much unused capital in the bank.
What's he talking about? How ...
6
votes
2answers
3k views
Taxes for Android / iPhone developers?
I'm an Android developer, but this question is pretty much the same for an iPhone dev.
I'm based in the USA, and I'm looking for any tips regarding taxes for app sales. Since apps sell in over 30-90 ...
5
votes
3answers
1k views
c-corp tech startup with expenses but no income - worth getting a bank account and accounting services for writeoffs?
I recently formed a c-corp and am looking for outside investment very soon.
I'm paying out of pocket for startup expenses (office lease, office equipment, software licenses, etc). I will spend about ...
5
votes
9answers
2k views
Are LLC and “S Corporation” the same thing? What are the differences?
From what I have read, both LLCs and S-Corps give you the benefits of a Corporation for legal purposes while avoiding double taxation.
However, I can't determine what the difference between the two ...
5
votes
3answers
2k views
Should we convert our LLC to a C-Corp?
We've reached a point where we need either hard capital or strategic hire capital and as an LLC it seems like it is much harder to grant capital (either immediately or in a vesting process).
Also, ...
5
votes
3answers
374 views
should I form a 1-man LLC?
I am a student and do freelance programming work to pay the bills until I graduate and maybe even after. I live in Kansas but I do freelance work across state lines (in Missouri currently)
Is it a ...
5
votes
6answers
282 views
DIY Payroll Processing?
I have tried (and been rejected by) a few online payroll solutions. As I am about to start (very soon) working with real employees, I need to find a way to do payroll more or less manually (though I ...
5
votes
1answer
252 views
Do I have any U.S. Business Activities?
In Apple's iTunes Connect, under Manage Your Tax Information, there is this question:
Do you have any U.S. Business Activities?
In general, you have U.S. Business Activities if you have ...
5
votes
1answer
355 views
Is it possible to delay customer invoices to the next financial year so I can save tax?
I'm operating a startup in its 1st year. This year's sales from consulting services is very good but the pipeline for next financial year is very very weak.
My question is, legally, can I delay ...
5
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2answers
3k views
Rental Property LLC tax deduction advice
If I form an LLC and my new company buys a duplex rental unit, my understanding is the 'company' taxes will be a pass-through to my personal 1040 income tax forms, with the appropriate forms.
I ...
5
votes
2answers
639 views
Form a company outside of the US?
This is definitely a different flavor of a common question. Here are the basic stats:
Online only startup -- no physical presence.
Everyone works from home.
We have 8 people in 4 countries (5 in USA ...
5
votes
3answers
372 views
Selling assets of my company, can I treat as capital gains tax at 15%?
I've been approached by people wanting to buy the assets (not stock) of my company (single member llc) which consist primarily of
my mobile app
its source code
the server code that supports the app ...
5
votes
3answers
182 views
Does using Fulfilment by Amazon in a different country makes you liable to charge local sales tax in the country?
My business is in Canada. I sell goods online that I ship by mail. I would like to use a fulfilment center in the UK to lower the cost of shopping for my european sales. Do I become liable for local ...
4
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2answers
1k views
Claiming Laptop as LLC expense
I don't have a separate bank account for my LLC (I am sole owner). I am planning to buy a new laptop. How do I claim it as an LLC expense, come tax time?
Related questions:
What are pros/cons of ...
4
votes
3answers
533 views
Why incorporate in the US? What about Bermuda and other tax-advantageous countries?
Basically, why should one incorporate in the US? I'm interested in three cases:
1 - Most of the revenue and employees are in the US.
2 - Most of the employees are in the US, but the revenues come ...
4
votes
4answers
1k views
Where should I set up my global internet business?
Is there a widely recognised 'best place of business' for global social-media style internet businesses, and what are the considerations? Considerations I'm thinking about are taxation, regulation, ...
4
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2answers
1k views
Do I need 1099-MISC forms for someone paid via paypal?
If I pay someone via paypal, do I still have to fill in the 1099 and/or w forms?
4
votes
5answers
355 views
How do companies like Microsoft, Google & Apple hoard cash?
I hear from a lot of small businesses that if they don't get rid of there cash by the end of the year then they get taxed. Also if they bank that money they still get taxed again every year, possibly ...
4
votes
6answers
890 views
Tax Accountant or Monthly Bookkeeping?
Given that it is tax time how should you pay an accountant?
Do you do your own bookkeeping and just work with a CPA firm to do your taxes or do you have a CPA firm on monthly retainer to make sure ...
4
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2answers
142 views
income in paypal
Does income in my paypal account need to be declared for tax purposes, or does it just have to be declared for tax purposes if I transfer my paypal funds to a real bank account?
4
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4answers
535 views
Seed Capital to Live On, Do I Pay Taxes?
I've been working on a startup since Jan. 1, 2009. To keep me alive (physically on a ramen diet) my parents give me $1-$2k per month. My company is set up as an LLC and my parents would like to ...
4
votes
3answers
3k views
How can you keep money in an LLC account when it isn't taxed directly?
I know LLCs can be pass-through tax entities, so you don't pay tax at the LLC level but only on the income of each member. Is the money only taxed when used to pay members? Can you keep money in the ...
4
votes
1answer
5k views
How To Transfer Money Between Personal & LLC Bank Accounts
I'm starting a very small business out of my home in Texas. I've formed the LLC and opened a bank account for it.
How should I handle putting my own money into the business account so I can avoid ...
4
votes
3answers
258 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 ...
4
votes
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 ...
4
votes
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 ...
4
votes
1answer
271 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 ...
4
votes
1answer
631 views
Startup - End of Year Bank Account Balance
I recently started an LLC in Maryland and a CFO for a company I used to work for suggested I not carry a balance in my company bank accounts at the end of the year. Is this something I should ...
4
votes
3answers
196 views
Contractor for a small startup, big project coming up: should I form a company around myself?
I've been doing some development work here and there for a friend of mine who is trying to start up a web-based branding/marketing company in Canada (I am also in Canada). To my knowledge he isn't ...
4
votes
3answers
327 views
Did you incorporate in Delaware and get surprised by the minimum annual franchise tax this year?
Looks like the DE Franchise Tax Board & SecState changed the minimum authorized shares tax - a lot of companies that incorporated this past year may have been unaware of this change or not sure ...
4
votes
2answers
340 views
UK Tax for Online Startup Software Company
I currently work full time for a private company and am considering on starting up my own online software company by forming a private limited company. I had a few questions:
I've noticed that the ...
4
votes
5answers
2k views
Options for hiring Indian workers directly
My core aim is to hire people directly in India (Delhi) and spend a lot of time there myself (I am a British person with a British passport).
I am interested in knowing what are the best options for ...
4
votes
3answers
473 views
Legal restrictions and tax regulations in global ecommerce
Currently, with all the power the Internet provides, it's relatively easy to start online business. There are no obvious restrictions on the process. A business from almost any location can sell ...
4
votes
2answers
825 views
Company formation for a non-resident – Delaware LLC and London LTD
Got a few questions about forming a single member LLC in Delaware or LTD in London. I’m looking into forming a company abroad for an easier way to do business and billing (+ its cheaper) and am ...
4
votes
2answers
276 views
Have you applied for R&D tax credits?
Like many software product companies, we spent an exorbitant amount of money in 2008 developing our product. I’ve heard that there are federal R&D tax credits available ("Section 41 Credit"), but ...
4
votes
1answer
447 views
Is there any tax advantage or incentive to leave money in an LLC at the end of the tax year?
We're forming a 2 person LLC and part of what we're trying to figure out is how much to leave in the LLC to build up some capital reserves.
Since an LLC is a pass through tax entity if the LLC earns ...
4
votes
2answers
133 views
Consulting while bootstrapping. How to organise company?
I'm a developer who has just sorted out part time consultancy work which I would like to use to maintain myself while bootstrapping a SAAS startup as a solo (for now) founder.
Given that I'd like to ...
