Multiple MLM Direct Sales Businesses

[Anonymous]

I am a consultant with multiple direct sales companies. Will I need to enter income/expenses for each business separately when I file my taxes? I’m trying to figure out the best way to track everything and finding that products such as Quickbooks seem to be designed for one business only, or they charge for each business which gets expensive, especially since I am only doing this part-time. If I need to track and report each one separately, what is the best way to keep track of everything? 

[Critter-3]

duplicate post

[Anonymous]

If this is a duplicate post, can you please point me in the direction of the original post so I can see the answer to the question?

[VolvoGirl]

Your other post is here

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/mlm-direct-sales-product-deducti... 

[Critter-3]

To see all your posts simply click on your username in a thread. 

[Anonymous]

Yes, I know how to find my other post, but I asked two separate questions, so they are not duplicates. I thought I was being told that this question had been asked by someone else and already answered, that's why I asked where to find it. I would still like to have this question answered, thank you.

[Critter-3]

Depends ... if you have a separate EIN for each business  then you should enter them separately however if they are all unincorporated single member LLCs then you can also put them all on one Sch C if they are all in the same "line of work or business".     

As for the quickbooks the same rule applies.  If they all have separate bank accounts you could choose to keep the books separately however there is no rule that they cannot be combined.  Either method will work ... it is more of a what is better for your recordkeeping or situation.  

[VolvoGirl]

Ask over in the QuickBooks forum.  I don't think you have to pay for each business.  

[Critter-3 · Accepted solution]

Quickbooks ... do your homework on the options for each version and make an educated decision.  If you have no bookkeeping or accounting background you may want to seek local professional guidance to get educated on what needs to be done,  how and when.  

Downloaded version is preferred and you can set up as many businesses as you like and you pay one fee once.  You do not need a pricey version  nor do you need the newest version.   I am still using the 2017 program myself in my tax business.  If you will use the program for payroll then you will need one 3 years old or newer.  You can search online sellers for a better price than you get thru Intuit direct.

Online version will likely require a separate account for each business and a monthly fee for each account.  

[Anonymous]

I don't think I have EINs and don't have an LLC. I am an independent consultant/independent contractor for 5 different direct sales companies: Usborne Books & More, Pampered Chef, Beautycounter, Mary & Martha, and Young Living. I don't keep inventory. I advertise for these companies, customers order through each company's website indicating me as their consultant, and I earn commissions on sales. I do incur some business expenses for things like samples and postage. Since I am new at this and 2022 will be my first year doing taxes as a consultant with these companies, I'm trying to prepare and figure out if I will need to enter each business separately into TurboTax and add expenses for each different business separately, or if they will be lumped together, because that will help me determine the best way to track everything. Thanks.

[Critter-3 · Accepted solution]

From what you describe you can file ONE Sch C as ONE business.  You have different clients not separate businesses.  

If you are new to being self employed, are not incorporated or in a partnership  and  are acting as your own bookkeeper and tax preparer you need to get educated ....  

If you have net self employment income of $400 or more you have to file a schedule C in your personal 1040 return for self employment business income. You may get a 1099-NEC for some of your income but you need to report all your income.  So you need to keep your own good records. Here is some reading material……

IRS information on Self Employment….
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center 

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

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

Home Office Expenses … Business Use of the Home

https://www.irs.gov/businesses/small-businesses-self-employed/home-office-deduction

https://www.irs.gov/pub/irs-pdf/p587.pdf

Publication 463 Travel, Gift, and Car Expenses

https://www.irs.gov/pub/irs-pdf/p463.pdf 

Publication 946 … Depreciation

https://www.irs.gov/pub/irs-pdf/p946.pdf

          

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Self Employed return and will help you keep up in your bookkeeping all year along with calculating the estimated payments needed ....
http://quickbooks.intuit.com/self-employed

          
Self Employment tax (Scheduled SE) is generated if a person has $400 or more of net profit from self-employment on Schedule C.  You pay 15.3% for 2017 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 do get to take off the 50% ER portion of the SE tax as an adjustment on line 27 of the 1040.  The SE tax is already included in your tax due or reduced your refund.  It is on the 1040 line 57.  The SE tax is in addition to your regular income tax on the net profit.
 


PAYING ESTIMATES
For SE self employment tax - if you have a net profit (after expenses) of $400 or more you will pay 15.3% for 2017  SE Tax on 92.35% of your net profit in addition to your regular income tax on it. So if you have other income like W2 income your extra business income might put you into a higher tax bracket.

You must make quarterly estimated tax payments for the current tax year (or next 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.)

To prepare estimates for next year, You can just type W4 in the search box at the top of your return , click on Find. Then Click on Jump To and it will take you to the estimated tax payments section. Say no to changing your W-4 and the next screen will start the estimated taxes section.

OR Go to….
Federal Taxes or Personal (H&B version)
Other Tax Situations
Other Tax Forms
Form W-4 and Estimated Taxes - Click the Start or Update button

[Anonymous]

This is very helpful, thank you! One more question: I am married, my husband works full-time and is the primary income earner in our household. We have always filed our taxes jointly in the past. Will we still file jointly, or will I need to file my taxes separately now that I am self-employed?