Hi,
I am just starting a new business (fulltime), its a sole proprietorship (not llc). Selling online in marketplaces like amazon/ebay etc and own website. Sales are just about starting now but i do not expect anything significant before october. This will be my full-time activity going forward, I will not be returning to a regular job (last worked in May 2023).
1. when should i start filing quarterly taxes? There are no sales to report. and iam in Michigan, with a valid sales tax number required to start collecting tax starting sept 15th 2023. The marketplaces (amazon/ebay are collecting and reporting sales & use tax on my behalf) and my own website is collecting sales tax for sales occurring in Michigan only, NO sales or use tax is being collected for sales to other states as iam below the nexus threshold.
2. What tax form is to be filed and Is quarterly online filing free via TurboTax or is there a package which includes quarterly and annual tax filing?
3. What options do i have in terms of what expenses / income, deductions are to be taken in the annual tax filing vs quarterly filings? Iam currently keeping track of all my expenses via Zoho expenses & books software. and planning to use using Turbo tax (your assisted filing) for the annual filing.
4. Is sales tax filing for sole proprietorship different from self-employment income tax filing?
5. Any other important things i should keep in mind as i try to make this simple and fool proof for tax purposes.
Please let me know if any clarifications are required about my specific situation.
Thanks,
