Taxes

Jayce^ jason at infogenix.com
Wed Feb 9 08:59:27 MST 2005


On Tuesday 08 February 2005 09:18 pm, Sasha Pachev wrote:
> As some of you may have noticed or heard, I am now a full-time independent
> consultant for the first time. Things are going well so far, except I need
> to figure out how I am paying taxes to make sure IRS does not hit me with a
> fine, and also to make sure I do not pay more than I have to.

Congrats, personally I'm just getting out of this world, well, I still have it 
on the side for small things, but not my 'daily bread' persey.

> If I did fine without a CPA when most of my income came from a W-2 type
> job, do I need one now?

Depends on how you setup.  Personally, you can get a cpa for a small business 
cheap.  I have an accounting background, and did my own my first year, I did 
allright.  After that I went to a cpa that I was referred to, he was fast, 
and saved me *much* more than he cost.  Also he knew small business rules 
quite well, and was able to help me setup a corp much better.  LLC/S-Corp 
laws are different by state, and are currently changing (s-corp is good in 
utah).  You WILL want to set one up, and pay yourself from that.  Takes a 
little for some people to get used to having two accounts, and representing 
two entities. (Such as my wife not understanding at first why we didn't pay 
tithing out of the work account, since "we/the business" had received a check 
there).

>
> Any other tips?

There are quite a few good Accountants around that can help in the setup.  Do 
it right at first, talk to one.  I can give the info of the guy I use if you 
want it, I HIGHLY recommend him.

Don't forget to keep records of everything, business writeoffs are all 
important.  They really will make the difference with how much money you 
make.

-- 
Jayce^
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