Questions tagged [small-business]

Questions specific to small businesses, generally under 100 employees and revenues less than $1,000,000.

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29
votes
4answers
7k views

When should I start an LLC for my side work?

I am doing quite a bit of sidework this year and wondering at what point would it be a good idea to "start a business" and bill through that.
3
votes
1answer
2k views

Indian citizen wants to work as a freelancer for Europe. How to pay tax in India?

I got an offer to work as a freelancer for a European company. In Europe, it's like you need to set up a small legal entity on your name but is this the same in India? How can I do freelancing in ...
9
votes
1answer
1k views

Determining the minimum dividend that should be paid from my S corporation

I am the sole shareholder and only employee of an S corporation. I understand that all profits of the corporation are passed through and taxed as income to me. I also understand that all dividends ...
12
votes
5answers
35k views

Deductible expenses paid with credit card: In which tax year would they fall?

If I paid my business expenses with a credit card during the month of December, which year can I deduct them from my taxes? 2011 (when the purchase was made) or 2012 (when I paid off the credit card)? ...
9
votes
1answer
915 views

Sole proprietorship or LLC?

At what point in the life of a small business would you choose to do a LLC over a sole proprietorship? What's the advantage, and what's the cost of doing an LLC?
8
votes
1answer
3k views

What are the benefits and downsides to an LLC vs. Sole Proprietorship vs. Individiual?

As a followup to my previous question, what benefits are there for an LLC vs. a Sole Proprietorship? What are advantages and disadvantages to both and also vs. just being paid as a person?
4
votes
1answer
338 views

Starting a new online business

I have just started to work on an online business mode website. My dream is to make it live and bring revenue from the website. However, the project is in Incubator phase. In this situation, can i ...
4
votes
2answers
2k views

Can I write off time I spent working on my business?

So, I'm a freelance web programmer by trade, which means that my time really is money. I, occasionally, work on side projects of my own and forgo the possibility of earning direct income for that time....
1
vote
1answer
105 views

Corporation Tax Help?

I’m hoping some of you may be able to help, as I am not very well versed in the tax department. Here’s my situation: Last year, I started doing work for a company that required us to be self ...
13
votes
2answers
13k views

Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India?

I am an Indian citizen and I work from India as a freelancer for an U.S.-based IT company. I am getting monthly payments directly into my Indian bank account. My colleagues' monthly payment come to my ...
10
votes
3answers
7k views

Full-time work + running small side business: Best business structure for taxes?

Currently I have a full time job (IT industry) but from time to time I do a side project. Most of the times my clients agree to pay me cash as the amounts are not large. However, last year there ...
13
votes
5answers
35k views

Any practical difference between “personal checks” and “business checks”?

I need to order checks for my LLC. I wrote maybe 5 paper checks last year (by hand, not printed). So it doesn't make sense for me to spend $30-40+ on "business checks" if I can spend $5-10 on "...
9
votes
4answers
2k views

I am the sole owner of an LLC. Does it make a difference if I file as an S-Corp or a sole-member LLC?

As an LLC with one owner, I had the option of filing using Schedule C on my household taxes, effectively treating business income (in this case, losses) as I would a sole proprietorship. My plan had ...
8
votes
1answer
10k views

If you run a sole proprietorship, how do you declare the income of the business on your taxes?

Let's say I have a small sole proprietorship with only a bit of income and expenses. I can do up a balance sheet and an income statement at year end. Is that all I need to submit with my taxes, and ...
6
votes
1answer
8k views

How to “pay” one self in a single member LLC w/ separate checking account?

I own a side company creating web apps. I formed an LLC, registered an EIN and opened a business checking account. Recently, I sold a copy of my software for let's say $10,000. Now, since everything ...
3
votes
1answer
2k views

Is it worth incorporating, when working in Canada as a contractor for an employer in the US?

Assume a Canadian contractor is working remotely from Canada for a US based contracting company. Is it advisable to incorporate, in Canada, in this situation? Also, once incorporated in Canada, is it ...
3
votes
3answers
20k views

Capital Gains in an S Corp

In this question about s-corp distributions, the answer was given that an s-corp taxes all profit as personal income. That is, there are neither distributions nor dividends which can be taxed at a ...
1
vote
1answer
455 views

Can I have a side income without registering it as a business

I am full time employed. If I want to generate some income from a side hobby-business by buying and selling gift cards, at what point in time do I need to register as a business/corporation with the ...
12
votes
3answers
963 views

Can I withdraw from my Roth IRA retirement account to fund a startup?

I'm 24 years old and have $10k in my retirement accounts (Roth IRA) after about a year with a real job. I'm considering withdrawing the entire balance to support myself for a few months while I ...
9
votes
1answer
2k views

Can I use my Roth IRA to start a business?

I've recently been reading up on Roth IRA to Self-Directed IRA plans. And I've seen a few places that mention their use as a seed-fund to start your own business.. Where can I find the parts of the ...
8
votes
2answers
2k views

In the U.K., can I deduct coffee as a business expense if I work from cafés?

I have a U.K. limited company of which I am the sole director and employee. I work from home most days, but I occasionally work at a local coffee shop when I need to get out of the house. Can I claim ...
7
votes
2answers
486 views

I may earn a lot of cash soon through self-employment on a lucrative project. How to handle the tax?

I'm in Canada, and am young and don't know anything about finance. I've been working part-time as a software consultant for a friend who's starting a marketing company. He recently landed a job with ...
6
votes
1answer
498 views

Student loan debt and business owner: What's the best loan-payoff strategy?

I graduated from my doctoral pharmacy program 1.5 years ago with ~215k of student loan debt. So far, the balance has been paid down to 170k. The weighted-average of the interest rates is 7%. ...
5
votes
1answer
765 views

In Canada, can I deduct my mortgage if running a business from my home?

If I run a home business and a portion of the home is used as an office for the business can I deduct a percentage of the mortgage?
4
votes
2answers
230 views

Charging sales tax for goods sold out of state?

Do I need to charge sales tax for goods sold in DC if I'm a florist based in Oregon (a no sales tax state)?
4
votes
2answers
1k views

Taxes owed on funds raised through Kickstarter for a film I plan to shoot?

I'm looking to run a Kickstarter campaign and I was curious about a few things. Obviously you'll need to pay taxes on the amount raised, if you don't spend it all producing something (expenses). ...
3
votes
1answer
289 views

Should an independent mobile game developer incorporate a business?

The story is thus: I am on the verge of publishing my first app, but I was thinking whether I should incorporate or not. I am an accounting student, albeit in second year with a budget of $1000. I am ...
3
votes
3answers
973 views

Should I file taxes or Incorperate a personal project?

I have effectively started a small business. The business is an online venture and has already generated a small amount of money through donations/etc. I am currently considering if I want to go ...
3
votes
1answer
1k views

My Ontario small business collects only PST (beneath GST threshold). How will HST affect me?

I own a small business in Ontario and make less than $30,000 per year. I only charge the PST Will I be affected by the new HST and if so, how ? ==================== Also: If the PST is going ...
2
votes
1answer
331 views

Borrow money to invest in a business venture with equity?

Is it generally considered a financially-sound thing to do for one to borrow money to invest in a business venture, which may not be their own? For example, Jane borrows $50K to put in to a startup ...
1
vote
2answers
69 views

Changing the address of an LLC and tax requirements

I'm neither a US citizen nor do I reside there. I have a single-member LLC registered in the state of Wyoming, US with a Wyoming virtual office address and an EIN. I'm not satisfied with the services ...
1
vote
1answer
130 views

Becoming self-employed alongside a full time job, working abroad in the UK

I am a foreigner working full-time in the UK and studying part time at Uni. I want to study full time. In my old country, I used to draw and fix computers to earn some extra money. What should I do ...
1
vote
2answers
2k views

Few questions regarding Business Physical Address and Registered Agent Address for an LLC

(UNITED STATES) I'm forming a single member LLC and operating it from home. Somewhere on the net said that I should not use my personal home address as a business address because if something goes ...
0
votes
2answers
2k views

Income tax on my online drop-shipping business (India)

I am an Indian citizen and I run a semi-drop shipping business. The details are: I deposited 10 lakh through cheque/cash into my Indian savings bank account (PAN not submitted during account opening; ...
0
votes
1answer
134 views

Transferring personal debt from startup costs and operations to a corporation

For a long time, I've been a one person startup, and have just bundled all business costs - presenting at conferences/travel, office rent, hardware equipment purchases, etc., to my personal account. ...