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10 votes
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Why do sole proprietors in India generally use a current account?

No. Current account is not a requirement. You can use savings account. You would need to pay taxes on interest. Savings account have limitation on number of withdrawal in a quarter, hence most sole ...
Dheer's user avatar
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10 votes
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Share 1099 payment with another sole proprietor

Jane should report $16,000 as income and an $8,000 expense to Sally, which will match the 1099 she will issue for Sally.
Hart CO's user avatar
  • 70.5k
5 votes

I'm self employed. Can I contribute to my previous employers 401k?

No, you can’t. 401(k) plans can only be contributed to by payroll deduction. Once you leave the employer, there is no way to make additional contributions. You are allowed to leave the money in that ...
Ben Miller's user avatar
  • 116k
5 votes

At what amount of income do you pay less tax with a Limited Company as opposed to sole proprietor?

It's more complicated. Most important, when you own a limited company, you and the company are separate legal entities. You own the company, but you don't own its money. What typically happens to ...
gnasher729's user avatar
  • 23.3k
5 votes

What happens to your spouse's sole proprietorship if they die?

Since it's a sole proprietorship, all of the business's assets and liabilities will now be owned by the estate. The estate (in the person of the executor or executrix) then handles winding everything ...
RonJohn's user avatar
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4 votes
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Capital allowance and balancing charges on UK tax return

In general when filling in the Self Assessment web form, you should leave fields blank if they would be 0.
GS - Apologise to Monica's user avatar
4 votes

Can I transfer self-employed income into LLC?

An LLC is a very flexible company when it comes to taxation. You have three basic tax options: LLC taxed as sole proprietorship -- This is very easy to do, but you will be taxed the same as if you ...
minou's user avatar
  • 7,536
4 votes
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How to keep track of revenue and expenses of a small business that I rarely visit?

Like D Stanley said, hiring the accountant in charge of the business/restaurant is likely the best you can do if you don't want to visit it often. But since it is a small business, maybe your friend ...
Gainz's user avatar
  • 252
4 votes
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Sole trader GST for small income business in Australia (aside from main salary)

Note: I am neither an Australian nor a registered tax practitioner. This is not tax advice. As far as I can tell, while any net income from the side-business would be lumped-in with your regular ...
TripeHound's user avatar
  • 9,171
4 votes
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Schedule C: where to report revenue split and professional supervision fees for a therapist?

I’ll let you in on a little secret: It doesn’t matter a whole lot which line you put these business expenses on; the tax will be the same no matter which one you pick. That having been said, you do ...
Ben Miller's user avatar
  • 116k
3 votes

I'm self employed. Can I contribute to my previous employers 401k?

I know of no 401(k) that will allow a former employee to contribute new money into a 401(k) program with two possible exceptions: The final paychecks, which are likely to be after the last day of ...
mhoran_psprep's user avatar
3 votes
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Sole proprietor: How to separate tax payments for home and business

As a sole proprietor, the tax liability of your business is calculated based on combining your business income with your personal income together. It is good advice to keep all personal and business ...
Grade 'Eh' Bacon's user avatar
3 votes
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Deducting business expenses paid for by gift card

To quote the answer you linked to: Perhaps the simplest way to think about this is you can only deduct an expense that you actually incur. In other words, the expense should show up on a bank or CC ...
TTT's user avatar
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3 votes
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As a sole proprietor can I charge a fee for being paid by check or card

You can charge a fee to accept checks, although I think the better solution might be to offer a small discount for early payment of your invoices. As some people here have suggested, why not add a ...
Daniel Anderson's user avatar
3 votes
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Declaring income when self-employed

The tax return has a section for completing business income. Reporting sole-trader income is very straightforward and easy to complete using MyTax online. As a sole-trader your business income is ...
Michael McMaster's user avatar
3 votes

Need access to funds that were earned & taxed prior to establishing LLC

"To access these funds now, I believe they need to be considered distributions, and pay capital gains tax. " This is likely not the case. When you transferred personal money to the LLC, you ...
Grade 'Eh' Bacon's user avatar
3 votes
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How to record converting privately used appliances to business use for tax purpose?

I think @RonJohn gave you the perfect answer: Sell your old appliances to your income property at market value. Show that market value as an expense against your rental income. You should be filing a ...
Michael's user avatar
  • 2,365
3 votes
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Sales tax on inventory consumed during R&D

It may vary from state to state, but my understanding from Minnesota sales tax classes I've attended and a sales tax audit of a client: you would pay the sales tax on the the materials used for ...
C.S.'s user avatar
  • 715
2 votes

Why do sole proprietors in India generally use a current account?

Current account offers a lot of benefits for sole proprietors. Think of it like bank account for a company. The bank provides a host of facilities for the company. A sole proprietor does not have ...
RAVI D PARIKH's user avatar
2 votes
Accepted

Sole Proprietor LLC quarterly estimated tax payment

Does schedule C exist for quarterly payments? No. Am I supposed to simply make the payment using Form 1040-ES without worrying about that the income gets reported as business income? You're just ...
David Schwartz's user avatar
2 votes
Accepted

Do I need business license and account to work as a software contractor

Do I need to obtain any governmental license, permit, etc to operate as an individual software contractor Software development is not normally a regulated activity (unlike selling insurance, stocks ...
xirt's user avatar
  • 5,121
2 votes
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Which non-mathematical subject could I tutor to make the most money?

I have worked as a private tutor for virtually all math, physics, and chemistry subjects, as well as a tutor for all major standardized entrance tests. My personal experience was that of the non-...
the_photon's user avatar
2 votes

How to keep track of revenue and expenses of a small business that I rarely visit?

I would keep track of the revenue and expenses by asking him how his business is going periodically over a beer and not investing in it at all. Even though I'm comfortable with my original answer, I'...
quid's user avatar
  • 49k
2 votes

EIN Needed When Filing Form 5500-EZ For Solo 401K

An EIN is normally needed in order to contribute to a Solo 401K. You should double check that your application with TD Ameritrade was for a Solo 401K and not some other investment vehicle. If TD ...
farnsy's user avatar
  • 15.1k
2 votes

How to transition a sole proprietorship to an LLC?

You're conflating liability with taxation. If you form an LLC, get the LLC a bank account, separate "finances", etc. and pay yourself out of that. They can "exist" simultaneously as your sole prop is ...
jimmy0x52's user avatar
  • 372
2 votes

Can a client pay directly into an IRA/401K?

No, your clients cannot contribute directly to your retirement accounts. The taxes are figured out every year when you file your income tax return. There's no advantage to having a client pay into a ...
Rocky's user avatar
  • 24k
2 votes

Can a client pay directly into an IRA/401K?

Or, alternatively, do I need to take the client fee as income and then deduct it somehow? Yes, but note that you can't contribute to a 401(k) after you are no longer employed by the company - you ...
D Stanley's user avatar
  • 136k
2 votes

Can a client pay directly into an IRA/401K?

No one can contribute to a 401(k) that was established by a previous employer-- not you and not one of your clients. (Well, depending on how you might define "contribute", if you have a rare 401(k) ...
Justin Cave's user avatar
  • 27.3k
2 votes

Sole proprietor paying expenses from personal account

Record it as an expense and the other side of the transactions comes out of "Owner Contributions." You essentially made an Owner Contribution each time you used personal funds for a ...
Jesse's user avatar
  • 2,610
1 vote

How much can I deduct for my home office?

You need to look into this guidance from the IRS: Requirements to Claim the Home Office Deduction Regardless of the method chosen, there are two basic requirements for your home to qualify as a ...
Cilantro Ditrek's user avatar

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