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    5 Replies Latest reply on Dec 15, 2011 9:28 AM by Accountant

    New in question... Please help!

    ginther03 Newbie
      I currently work a full-time job making approx. 50k a year and my wife makes about 28k. In February I formed an LLC (carpet cleaning business) I have spent approximately 10k since I formed the llc on various equipment and cleaning chemicals. Needless to say, business has been tough! I have only done about $300 worth of jobs... I was wondering what to expect for my taxes if i keep going at this rate all year? Of course I have other operating expenses as well, liability insurance, car, loan payment, etc. I was wondering if I would be paying taxes on the business income or even if there would be a possibility for a tax return? I hope i'm not all over the place here. Thanks for any advice!
        • Re: New in question... Please help!
          Uncle Leon Tracker
          IMHO, when you decided to go ahead with your business, you should have interviewed and selected an accountant. You should do so now.

          Absolutely file a business tax return. As an LLC your business expenses (loss) are deductible and may be applied against your corporate income. Having just started your business, you have had no profit, as yet. It's early in the year, and hopefully, you will show a profit by the end of this year; you wil, in any case, want to claim all business expenses.

          If you need help marketing, or with any other aspect of business; I suggest that you contact your local SCORE office. SCORE is sponsored by the SBA and provides FREE consuling for businesses, and in some areas, very low cost workshops. Contact SCORE.ORG to find your local office.
          • Re: New in question... Please help!
            bm911tax Adventurer
            How is the LLC taxed, as corp, partnership or sole-proprietorship?
              • Re: New in question... Please help!
                Uncle Leon Tracker
                O K ....I say again...Hire an Accountant.

                YOU will get to choose how you want the LLC to be taxed. Almost assuredly it will be a "pass-through". But use the expertise of your CPA to guide you in making that choice.

                Boys and girls...if you're are going to start a business, you NEED and accountant. If you aren't willing to invest in this necessary business expenditure, I suggest that you stay home.

                I don't mean to seem abrupt; but really...this is an absolute.

                Any reasonably competent accountant will save you much more money than he will cost.
              • Re: New in question... Please help!
                Accountant Adventurer

                I see some nice pieces of advice here. I agree with Leon that you definitely need an accountant. But to answer your question, you will not be paying tax on the income twice unless you choose to be a C Corporation for tax purposes (which I dont recommend you do). You may very well have a potential loss to claim on your tax return when your gross income is far less than your expenses.


                Good luck with Accountant hunting. Feel free to contact me if i can help in any way.