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
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
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
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.
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!
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
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.
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
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.
Ozma: 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. Sadly this is true. it's almost impossible to break out of the bottom half of the tax bracket because as you said the more you earn the more yu get taxed. Hopefully the new president will help to remedy this. As for the amout of taxes you need to set aside, it really depends on how much your brining in. i would file quarterly for the first 1-2 years just till you get an grip on how much you're going to be paying then switch to putting some aside.
The Truth About Trusts or The Secrets Revealed About Trusts People always want the truth or some secrets about something..LOL Good titles..I like them all!!!
The problem with our system is that those that do work hard get taxed way to much to and smacked down, while those that don't want to do anything get rewarded. One day those that do work hard aren't going to want to any longer. About 30% of our work force support our country which is why there should be a flat tax that is applied to everyone. This way, those that work hard for their money don't get discouraged and those that don't have to pay taxes do get to pay some taxes. There should be a flat 15% tax across the board. Don't forget, in the old day when there were not taxes and the goverment wasn't ruling our lives, we were much better off as a nation.
You have to understand that we are also being cheated by the Gov't as well, but there is virtually nothing we can do about it. They don't have to tax us as harshly as we are being taxed. If you can find a way to cut the corners without risking yourself to any legal problems , then I say do it. Its a game, there are many I mean many strategies that a person could use to limit the amount that they are being taxed. Everybody including religious ppl want to find a way in which to limit their tax burden, but not paying at all is does not limit your tax burden , it adds to it.
