10
votes
Accepted
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 ...
- 57k
10
votes
Accepted
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.
- 69.1k
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 ...
- 50.6k
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 ...
- 22.4k
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 ...
- 115k
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 ...
- 7,506
4
votes
Accepted
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.
- 27.9k
4
votes
Accepted
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 ...
- 252
4
votes
Can running a side business (sole proprietor) at a loss along with a full time employee job help reduce total taxable income?
No. The equipment costs are not necessarily a direct expense. Depending on the time of purchase and type of the expenditure you may need to capitalize it and depreciate it over time. For example, if ...
- 166k
4
votes
Transfering my wife's personal allowance - Zero tax?
I'm assuming this is the UK given the mention of "council tax", though I'm not sure where your personal allowance figures come from - the personal allowance for 2015/2016 is £10,600 and for 2016/2017 ...
- 27.9k
4
votes
Accepted
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 ...
- 9,105
4
votes
Accepted
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 ...
- 115k
3
votes
Accepted
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 ...
- 42k
3
votes
Accepted
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 ...
- 47.2k
3
votes
Accepted
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 ...
- 10.1k
3
votes
Accepted
As a Sole Proprietor, will "employer" Solo 401k contributions count towards gross income?
This seems to depend on what kind of corporation you have set up.
If you're set up as a sole proprietor, then the Solo 401k contributions, whether employee or employer, will be deducted from your ...
- 35.7k
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 ...
- 136k
3
votes
Accepted
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 ...
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 ...
- 42k
3
votes
Accepted
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 ...
- 2,365
3
votes
Accepted
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 ...
- 715
2
votes
Accepted
If earning as freelancer, is it better to be a Sole Trader or Limited Company?
As I understand it (please correct me if i'm wrong, i've looked at this before and i've been a sole trader briefly but I've never formed a LTD company) there are pros and cons to forming a limited ...
- 2,909
2
votes
Should I use EIN for business once it changes structure from Partnership to Sole Propietorship?
To answer your question 2, I can't think of any advantage of using your SSN over an EIN, but there are some advantages to having an EIN as a sole proprietor. So depending on the answer to question 1, ...
- 47.2k
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 ...
- 795
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 ...
- 10.3k
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'...
- 49k
2
votes
Accepted
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-...
- 136
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 ...
- 5,083
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