We specialize in bookkeeping, payroll, income tax return preparation, and retirement planning, and serve a nationwide clientele consisting of individuals and businesses of all types and sizes (LLC, partnerships, C & S Corporations), as well as trusts and estates. As financial problem solvers, we provide practical advice and proactive solutions with personalized service. We are affordable, experienced, and friendly, and we tirelessly study and research the ever-changing world of tax law and regulation so that we can help every client realize the greatest possible savings and return on investments. Our office is conveniently located in Dover, Delaware. Please contact us today to find out more about how we can make YOUR life less taxing!Tax
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๐๐ ๐ ๐จ๐ฉ๐๐ง๐ฉ ๐ข๐ฎ ๐ค๐ฌ๐ฃ ๐๐ช๐จ๐๐ฃ๐๐จ๐จ, ๐๐ข ๐ ๐ฉ๐๐ญ๐๐ ๐ค๐ฃ ๐๐ซ๐๐ง๐ฎ๐ฉ๐๐๐ฃ๐ ๐ฉ๐๐ ๐๐ช๐จ๐๐ฃ๐๐จ๐จ ๐๐ง๐๐ฃ๐๐จ ๐๐ฃ?
If you do make the leap to leave your 9-to-5 and start your own business, tax obligations do change. Though youโre not taxed on EVERYTHING, you are taxed on your net profit (your revenue minus deductible business expenses).
So if you earn $100,000 and have $20,000 in valid expenses, youโre taxed on $80,000โฆbut only if those expenses are actually tracked.
That means filing:
โข Receipts
โข Business bank and credit card statements
โข Mileage logs, if you drive for business
โข Records that show the business purpose
When youโre self-employed, the burden of proof is on you.
If you canโt show it, itโs much harder to claim it.
If you want a tax consultation for setting up your business in a tax smart way so you're compliant with the IRS's requirements, DM us.
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๐๐๐ฎ ๐๐ค๐๐จ ๐ข๐ฎ ๐ฉ๐๐ญ ๐๐๐ก๐ก ๐๐๐๐ก ๐จ๐ค ๐ข๐ช๐๐ ๐๐๐๐๐๐ง ๐ฃ๐ค๐ฌ ๐ฉ๐๐๐ฉ ๐โ๐ข ๐จ๐๐ก๐-๐๐ข๐ฅ๐ก๐ค๐ฎ๐๐?
Because youโre paying both sides of Social Security and Medicare now.
At a W-2 job, you pay 7.65%, and your employer matches it.
When youโre self-employed, you pay the full 15.3%.
On top of that, youโre also responsible for:
โข Paying tax on your profit, not revenue
โข Making quarterly tax payments
โข Tracking your income and expenses yourself
You can typically deduct half of your self-employment tax, which helps lower your taxable income.
But no one is withholding taxes for you anymore.
Thatโs the shift that catches people off guard.
A practical next step: estimate your monthly tax set-aside based on your last few months of income, then automate that transfer before the money gets absorbed into everything else.
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"Remember, diamonds are only lumps of coal that stuck to their jobs." -B.C. Forbes
Whether you're trying to stick to a budget, a business plan, a parenting strategy, or an exercise plan, envision the end result and keep at it.
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First State CPAs & Associates |
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|
18 S. State St, Dover, DE 19901 |
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| (302) 736-6657 | |
| Business Hours | |
| January 1st January 31st | |
| MondayโFriday: | 8amโ5pm |
| Saturday & Sunday: | closed |
| February 1st April 15th | |
| MondayโThursday: | 8amโ6pm |
| Friday: | 8amโ5pm |
| Saturday: | By appointment |
| Sunday: | closed |
| April 16th December 31st | |
| MondayโThursday: | 8amโ5pm |
| Friday, Saturday & Sunday: | closed |