The Small Business Tax Help Blog

Posts Tagged ‘based’

Question: form to fill out to apply for home based business?

I am running a very small business and a friend of mine who is an accountant suggested I get a federal tax ID number for checking purposes as well as to buy things wholesale to save on money. She said it would help keep things organized. She said she thinks the form to fill out is the ss-4 form. Is that correct because I looked at that thing and was confused! I will have no employees for many years to come, no benefits to pay or anything.

Answer: You don't need a federal tax ID number unless you have employees. Contact your state's department of revenue to apply for a resale license, which is what you need to buy wholesale. When you apply for the resale license, you will tell the revenue department your business name, social security number, and any other pertinant information about the business or yourself. You will then be required to file a sales tax return at least quarterly, whether you had any sales or not.

You may also need to check with your county to see if there are any zoning restrictions or special taxes that apply to any home-based business in the county. You will usually report your business income once a year and may be liable for taxes based upon your business net revenues.

You will, of course, be required to declare all your income and expenses on your federal and state income tax returns.

Once you've decided upon your business name, you can open up a business account at your bank.

U.S. offers special homeowner benefits to military personnel

Servicemen and women have an extra year to qualify for tax credits for buyers. The government also helps owners who must sell their houses for less than what they owe. The United States tries to take care of its warriors, a tradition that Congress has continued in little-known sections of the latest home buyer tax credit legislation and one of the government's main programs to help military ...

Home Based Business Tax Deductions

Question: Several Q’s about having a very small home-based business in IL. Can you help?

To supplement my regular job, I have a home-based job (self-employment) earning less than $250 a month doing invoicing for a small local company. A portion of my and my husband’s office/study is set aside solely for that job, complete with necessary office equipment.

I’ve come to understand certain expenses can be deducted; such as a portion of our mortgage, taxes, utils, etc. Does anyone know where I can get information on home Business Tax Laws for Illinois? Is this something requiring an accountant or can it be done on my own? Does anyone have any personal experience with this sort of thing and can offer an honest opinion as to whether or not this small a side job is worth the tax and other hassles—or perhaps think I’d need another small job or two to make it worth the effort?

Thanks in advance for any and all useful, pertinent advice you can provide!

Answer: Go to IRS.gov and search business expenses. There is a nice booklet to download. As far as state taxes go, you can go to your state's website and look up new business, Business Taxes, etc.
For $250.00 a month, the IRS might see your business as a hobby, though my tax business is less than that per year.

Tracking and calculating utilities, depeciation taxes for the home office will be a pain in the neck. Be sure you have a separate checking account and pay all your expenses through it or a separate credit card.

Abandoned Danvers home could become affordable housing

DANVERS and mdash; When the town took a large, single-family home at 24 Cherry St. for back taxes in the fall of 2008, officials were surprised at what they found inside. "There were cigarette butts in the ashtrays, dirty laundry on the floor," said Susan Fletcher, assistant director of planning and human services. "It looked like somebody went for a loaf of bread and didn't come back."

(Home Based Business) DONT Make THESE (Home) (Business) MISTAKES!!!