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coreyjroman
Preferred Member
Joined: 11 Jul 2005
Posts: 91
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# Posted: 4 Aug 2005 23:55
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I have heard so many people around here where I live that run a small business say how they hold so much pride in cheating uncle sam out of a dollar or two. And I know of 2 aquaintances that were charged with and/or penalized for defrauding on their taxes after being audited. It cost these guys a lot more to cheat than it did to just be honest. I have even met many so called "christians" who pray at the dinner table, hold their hand up in church while praising GOD and hold their tongues from telling lies and spouting obsenities that actually cheat the government out of mediocre amounts of money on saleable items! The funny thing is most of these people work in a retail environment and all they would have to do is add sales tax to the order and set that money aside but instead they add tax to the work order or invoice and when the customer pays cash... they tear up the invoice and keep the tax money for themselves. This is the type of cheating I am talking about. it's one thing to simply not take in tax revenue and then not pay any even though it is still considered wrong but how can so many people justify adding tax revenue to an order and then tearing it up and lying about it!? That is being dishonest! It is also unethical and illegal. And a dangerous game to play when you finally reach a successful point in your business... One mistake and it's back to zero. My advice is if you are going to run a retail business from home... Pay your taxes! It is usually only a mediocre percentage anyway and beside that your customer pays it... Not You. Keep it legal... Keep it real. Now on the other hand a real tax structure has not hit the internet yet except when selling to people in your same state. So if taxes bother you that bad... than sell out of state on the intenet. LOL
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agoodsaid
Member
Joined: 13 Aug 2005
Posts: 51
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# Posted: 14 Aug 2005 07:25
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Hi Corey ~
That's one of the advantages I really appreciate about marketing a company who's product I don't have to inventory.
Sales tax becomes a non-issue when your customer is buying a service or being drop-shipped directly from the company.
Andrea
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gary99
Member
Joined: 29 Sep 2005
Posts: 24
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# Posted: 8 Nov 2005 16:47
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Also remember to set aside money for your own personal income tax. If you're being paid as a contractor, or selling stuff on your own, there's no one holding your hand, withholding the money you owe the government. If you wait until the end of the year to figure it out, you're going to be in a world of hurt. Every time you get a check, take out the portion you're going to owe the government, and set it aside. Preferably put it in a seperate savings account, so you'll have it when it comes time to pay.
Programs like TurboTax will help you easily figure out how much you're going to have to pay.
-Gary
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WhitePhoenix
Member
Joined: 3 Jan 2006
Posts: 227
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# Posted: 4 Jan 2006 21:46
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Gary, you offer some sound advice. But wouldn't paying quarterly taxes be easier? And I'm sure that there are some people who don't make enough to have to pay much of anything in taxes owed to Uncle Sam.
Still, I agree. File the forms and keep it legal. Those who don't just make it difficult for the rest of us trying to earn a living.
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TJamMoneyMan
Member
Joined: 11 Nov 2007
Posts: 370
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# Posted: 14 Nov 2007 17:21
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Hell,
I spoke to a person who had his own auto repair biz.
He charged taxes, and of course paid NOTHING to Uncle Sam.
He said for the first 2 years or something, it doesn't even matter - something about claiming a loss or business start up costs.
He said he never heard from the IRS about it - and I believe that!
So many retailers cheat like that - but I bet they would, if they could, throw the book at a shoplifter though!
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jimnopks
Member
Joined: 15 May 2008
Posts: 1
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# Posted: 15 May 2008 19:05
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Hi folks, glad to be here.
I looked at this thread because it is part of what I do for a living; advise people on the best way to set up a business.
I am amazed at how little the education systems arould the world teach people about this subject.
You would think with so many people owning a business and people wanting to start a business that sound, factual information would be readily available but sad to say, it's not there.
I have been helping people protect thier assets for 24 years, and only last year did I learn the truth about trusts.
I am writng a book about what I discovered, and need help picking a title. Here are a couple of titles I have on the drawing boad.
Please tell me which one you like best.
1. The Truth About Trusts
2. Asset Planning Secrets Revealed.
3. Murphy's Laws On Asset Protection
Thanks
Jim Stiner
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Jim Stiner
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opendomain
Member
Joined: 19 Aug 2007
Posts: 396
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# Posted: 15 May 2008 23:43
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TJamMoneyMan: Hell, I spoke to a person who had his own auto repair biz. He charged taxes, and of course paid NOTHING to Uncle Sam. He said for the first 2 years or something, it doesn't even matter - something about claiming a loss or business start up costs. He said he never heard from the IRS about it - and I believe that! So many retailers cheat like that - but I bet they would, if they could, throw the book at a shoplifter though!
This happens alot actually and for the most part it's fairly "safe" the IRS usually dosn't try to audit a start up company that is in the red...what are they going to take from them?
I've only ever heard of one business being audited intheir first 2 years while being in the red, and in the end the IRS basically just left them alone because they were playing by the rules.
Personaly income tax IS a biggie you have to watch for and pay attention to. Most people online don't make enough in a year to need to worry about it. But if you find yourself making more than 1k a month I would STRONGLY suggest you set some money aside for your income tax as it does raise your taxable income. I have 4 great kids so I get credits up wazoo so i'm generally ok.
If you don't have tax credits, er, um I mean children then I would definitely start placing money aside to off-set your new income. Filing quarterly is also a very GOOD idea.
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happywife
Preferred Member
Joined: 14 Aug 2007
Posts: 582
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# Posted: 16 May 2008 18:17
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jimnopks: Please tell me which one you like best. 1. The Truth About Trusts 2. Asset Planning Secrets Revealed. 3. Murphy's Laws On Asset Protection
The Truth About Trusts
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Ozma
Member
Joined: 16 May 2008
Posts: 11
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# Posted: 16 May 2008 19:31
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I hate the income tax so much. I finally made enough last year to scrape together a downpayment for a home, and I bought it, and then filed my taxes, and learned that the government basically wanted every single penny I'd saved. Grrrrr. So now i 'owe' them. I just can't seem to get ahead. The more I make, to save and invest, the bigger precentage of it they want. And for what? To pay off interest owed to the Federal Reserve to fund an illegal war. grrrr.... taxes. i don't understand why everyone in the country pays a different amount of 'rent' to live here. why is there no incentive to work harder and make more money? the more I make, the more they want. i could make $20,000 in a year or I could make $40,000 in a year and i'll still end up with the same amount. lol.
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