Question by j_mallock: What tax info do I need for my home based business?
I am starting a pool and spa cleaning business. Because it is just starting, it is considered a home based business. I am not going to have any employees so do I need any kind of federal or state tax numbers? I know I will have to pay taxes on the business, so how do I set that up? I have looked online and on the IRS website, but I am hoping someone can explain this in lamens terms. Thanks
Answer by Cindy
It really depends on how your business is set up. Are you a Sole Proprieter or Incorp?
If it’s a S.P, then you don’t need an Tax Id number, you will just use your ss# and all the money you recieve will be counted as your personal income. I would suggest setting aside 30% for taxes. When you do your taxes, it will tell you how much you owe.
If you can’t find anything on the IRS website, you can also talk to either a lawyer or an accountant for help. You may also want to check out websites for small businesses or your local Chamber of Commerce…. Good luck to you.
Good luck to you. I’m trying to get my fiance to open his own pool and spa company too.
Oh.. also, go to your local City Hall. You will have to get a biz license from them also. They may also have you get one for the cities you will provide service for.
What do you think? Answer below!