The Small Business Tax Help Blog

Posts Tagged ‘taxes’

Question: To start a business in NYS and have the ability to sell to anyone nationally and globally, what do I need?

I want to start an online business in the State of New York, county of Wayne. I know I need a fictitious business name (or “doing business as” name) and a business license to legally operate in the State of New York.

I will not be selling tangible items. Instead, I will be selling services such as web design/programming/SEO/hosting. Do I need a seller’s license?

I will only be one man (no employees in the United States) but I will send some work overseas. Do I need to obtain an EIN (I don’t believe so). And lastly, since I will be registering for a DBA, I don’t believe I need a Federal Tax ID (both can be used with SSN, I believe).

Do I have this alright? So I only need to obtain and register for: a fictitious business name (or DBA) and a business license?

Thanks in advance for your help!
Alex

Answer: You do not need a seller's license if you are not selling any taxable items. However, some suppliers won't sell to you without one, so if you run into this, get one then.

You are not required to have an EIN, but they are free and easy to get from the IRS. You can then use it to establish credit for your business and use it on your bank accounts, etc. The EIN and Federal Tax ID are the same.

Your only other consideration would be if you choose to incorporate as an LLC. If you have significant personal assets that you would like to have protected from any potential business liabilities, then an LLC is a good option.

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Question: question about tax id and FEIN or EIN number?

hi there, i just want to know the difference between the two and if they are the same, the thing is that i just built a company and the bigger company that my company is going to work for requires me to put a tax id at the application form, some people have told me to fill out a form for the EIN or FEIN, my company is a partnership and i do not have any employees at the moment, but it stills requires me to put it… where can i fill this form out online? whats the difference between tax id number and EIN? or which one do i really need? any information would be great, thank you.

Answer: Tax ID number, EIN (Employer Identification Number) FEIN (Federal Employer Identification Number) are the same thing. You need to complete the Form SS-4 to get this number. You can apply online at irs.gov. Do not go to any website where they ask you for payment to fill out the form. It can be done for free directly at the IRS. There is also a toll free number if you would like to get the number over the phone but the form is pretty easy to complete.

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Question: I am doing a online business and want to save tax on it?

I am currently working with a Firm in Mumbai and my sal is 30k p.m. I am paying normal tax on it. I have also started a small online business and my earning is really going great. I have a NRE account and all my online income comes from US company.

My question is If i put my money in NRE account will i still have to pay tax in india?

Or are there any good options where i can save my tax by showing my business expenses if I have to pay?

Answer: You are working in India. You are an NRI. But it seems you was a NRI before. OK?

When you are in India and earning in India, you have to pay tax to Indian Income Tax department. You have to show your on line business income as Income From Business and you have to pay taxes on your salary+Business income. If you hide your on line on line business income, then you are taking some risk.

Regarding the expenses, you can show the room rent (or claim part of the house rent), claim power bill, claim employee salary (if you wish), claim computer depreciation, Internet bill, telephone or cell bills and so many. Contact a Tax consultant. He will guide you how to save tax.

Property tax is overriding Litchfield Park issue that splits council candidates

In the Litchfield Park City Council primary election, elephant in the room is a property tax vote.

Hiring Technical Editors - Tax & Accounting, a business of Thomson Reuters

Question: Should severance pay count as employment earnings for Unemployment Claim?

I was laid off last November 2008 and from December 2008 to March 2009 I was receiving “severance pay” from the employer that laid me off. The California Unemployment Office first counted the $14,000+ of severance pay for that 4-month duration as income for the last quarter earning thus giving me a larger weekly claim.

They recently sent me an amended claim stating that the $14,000 will NOT count as income in the last quarter of 2008 thus reducing my weekly pay from $474 to only $370.

My question is shouldn’t that severance pay count towards my last quarter earnings? Does severance pay not count at all when calculating someone’s earnings? I am being taxed on it and at a very, very high rate (25%).

Thanks!

Answer: Dear S: Unfortunately it's CA game and they make the rules. A double hit as the IRS taxes it and unemployment pay. This year '09 the first $2400 of unemployment pay is not taxed.

This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent

American Water Reports Fourth Quarter and Year-End 2009 Results; Announces 2010 Earnings Guidance

VOORHEES, N.J.----American Water Works Company, Inc. , the largest investor-owned U.S. water and wastewater utility company, today reported results for the fourth quarter and year ended December 31, 2009.

2009 Payroll Tax Cut

Question: Can visits to strip clubs (cover charge, drinks and tips) be used as a tax deduction for business expenses?

Strippers do not pay taxes on tips, so shouldn’t the tipper get a tax break as well?

Answer: Funny, but yes. Do a search on any search engine and you will find articles about it.

Top Ten Tax Tips for Small Business Owners

Facing a difficult economy and new tax changes, many small business owners will need to be especially alert to pitfalls and opportunities this tax season, according to Moore Stephens North America Inc., which represents 125 offices in North America and $1 billion in annual revenue.

Deducting Business Expenses Explained By New York Accounting & CPA Tax Firm