topic New Business in Get your taxes done using TurboTax

New Business

ele23261 — Wed, 30 Oct 2024 23:04:32 GMT

just started a new tour business in Maine. What form do I need to file and when do I need to file? I also have people working for me as contractors. How should I best prepare for their taxes?

Re: New Business

VolvoGirl — Wed, 30 Oct 2024 23:14:45 GMT

What kind of entity did you set up? Are you a sole proprietor or a LLC, etc?

To report self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You will need to use the Online Premium version or any Desktop program but the Desktop Home & Business version will have the most help.

Turbo Tax Beginners Tax Guide for the Self Employed
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5

Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center

Publication 334, Tax Guide for Small Business
https://www.irs.gov/pub/irs-pdf/p334.pdf

Publication 535 Business Expenses
https://www.irs.gov/pub/irs-pdf/p535.pdf

You pay Self Employment tax on $400 or more of net profit from self-employment in addition to any regular income tax. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.

You may need to send in quarterly estimated payments. You must make quarterly estimated tax payments for the current tax year if both of the following apply:
- 1. You expect to owe at least $1,000 in tax for the current tax year, after subtracting your withholding and credits.

- 2. You expect your withholding and credits to be less than the smaller of:
90% of the tax to be shown on your current year’s tax return, or
100% of the tax shown on your prior year’s tax return. (Your prior year tax return must cover all 12 months.)

Here are the blank Estimates and instructions…..
https://www.irs.gov/pub/irs-pdf/f1040es.pdf

Or you can pay on the IRS website. Be sure to pick 2024 1040ES payment
https://www.irs.gov/payments

Re: New Business

VolvoGirl — Wed, 30 Oct 2024 23:18:58 GMT

You need to give a 1099NEC to anyone you paid $600 or more to for the year. But not to corporations or for merchandise. You send the IRS a copy of the 1099Misc with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also. Then you manually enter the total amount on your personal Schedule C for Contract Labor.

You can prepare W2 and 1099NEC & 1099MISC in either the Desktop Home & Business program or the Online Premium version. Come back in January when you need to prepare the 1099NECs and know which version you have.

Re: New Business

VolvoGirl — Wed, 30 Oct 2024 23:42:29 GMT

If it is a Single Member LLC it is a disregarded entity and you file it in your personal 1040 tax return on Schedule C as self employment. If you elected your SMLLC to be an S corp you need to file a separate Business return 1120-S for it.