Paying taxes as a small business can seem kind of
intimidating. Like I mentioned yesterday, if you are registered as an LLC or
Sole Proprietor, your business taxes are one in the same as your personal
income tax with the addition of paying an estimated quarterly tax. Paying the
quarterly tax will prevent you from experiencing sticker shock at the end of
the year when it’s time to fork over all of it. Your accountant has tons of
answers about what system is the best for you and your business.
Now for EINs . An EIN (Employee Identification Number) is
something you will need to apply for no matter what kind of business you have.
This is also known as your Tax ID number. You’ll use it a lot for opening bank
accounts, filling out legal forms, and paying taxes. You can apply for one on
the IRS website here.
Since I had no idea how to do any of this last year, I
walked into my bank and asked the business banker how to make this all kosher.
He walked me through registering as an LLC and getting an EIN number. It took
about a half hour and I was so thankful to have someone to walk through the
steps with me. Don’t be afraid to ask a personal banker or accountant to do the
same!
So that’s about it for all the legality mumbo jumbo. If
there’s any glaring areas you are still wondering about, I’d love to hear!
Oh, one more thing…keep ALL
your paperwork! In fact, start a pretty binder or something with labels
and the like. This running a business thing doesn’t have to be aaaaaall
business. Polkadots and sparkly organizational tools welcome.
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