I recently asked for help regarding my small business. (Sorry in advance for my pregnancy emotions coming through here!)
SOME BACKGROUND:
My previous accountant wasn't very helpful in guiding me and chose to register me as an S-Corp.
However, my business is TINY and very part time. I'm not generating much income (seriously, it's rare to even make $100 in a month...I'd call it more of a side hustle), YET I'm registered as an S-Corp.
I have not been paying myself what would be considered a fair wage or any sort of payroll system (which is a requirement for an S-Corp as far as I know).
Plus, because I'm obviously not making much at all, paying $200+ just to file my business taxes was crazy!
TAX PAYMENTS:
I also haven't done quarterly payments or anything like that. I just don't know where to even get this information on how to do this stuff, and I had hoped my accountant would've guided me through all these things, but that wasn't the case.
**EDIT: I just looked and my accounting software (I do keep track of everything), and my net profit was in the negative. Would I even owe anything in taxes? I know last year I didn't. Still can't figure out how to know how much I'm supposed to be paying for that.
OTHER QUESTIONS:
>>I would definitely like to switch away from being an S-Corp since I'm not meeting those requirements at all. Would you recommend an LLC or Sole Proprietorship?
>>If so, how complicated would that process be? What would I need to do?
>>What am I going to need to do this year for taxes? I assume I'd still have to file as an S-Corp since that's what my business was registered as in 2019 (and still is at the moment).
SOME ENCOURAGEMENT?
I'm REALLY wanting an accountant to guide me through all this. However, if it costs so much to even just file for taxes, how in the world would I be able to afford having someone walk me through everything, help me make it right, file my taxes, etc? It's all so overwhelming and discouraging that it's so complicated for a tiny business like mine.
I've been running this hand-made business because it's something I'm passionate about, with the hope of being able to bring in a bit of extra income for my family. I'm a work-at-home mom with a toddler and another baby on the way. I feel awful that instead of blessing our family, it seems like it's causing more stress since I haven't been able to pay myself much at all, and now am going to have to pay who knows how much to get this all resolved!
I guess I'm looking for practical advice and guidance, as well as some words of encouragement from those of you who actually understand this stuff.
Thanks so much in advance for your help (and for putting up with reading this whole post)!
