When and how do I pay taxes to the IRS for a sole proprietorship?
I just started a home based business and would like to know when and how do I pay taxes to the Internal Revenue Service? Do I have to register my business through the IRS as well? The only tax I know how to pay now is the sales tax that I collect from customers. I live in Clearwater, Florida which is in Pinellas County.
The schedule C is right. You need to go to www.irs.gov and you can read or download the publication that goes with that form. It is well worth your time so that you don’t lose any deductions because your income is a net figure. Mileage is a big deduction and each and everyone will help lower that income. Learn about what is an asset and depreciable and what you can expense. You are responsible for paying your social security, making estimated tax payments and there are fines for not sending in the quarterly payments the second year. Keep good records and you must have a paper backup for each expense so keep those receipts. I’m from a different state so I don’t know Fla’s requirements. Hang in there. The way to make the most money is to work for yourself. . .and sometimes it a lot of work but being your own boss has it’s own rewards. I just love working in my pjs and drinking coffee some mornings. Good luck!