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Who is legit and how do you prove income? Ect.

Who is legit and how do you prove income? Ect.
« on: April 06, 2011, 12:41:43 PM »
Who is legit and how do you prove income? Im guessing you would just get a DBA and an EIN for taxes, but after that what do you need to do? Do you have to give each person that buys something a receipt for tax purposes? How would you prove income for a car loan or something? W2 from last year? What is your W2 is a very small amount because you just started your biz? How can you legally prove it with out looking at last year as a whole? Thanks Guys.

Re: Who is legit and how do you prove income? Ect.
« Reply #1 on: April 06, 2011, 06:50:30 PM »
If you are serious about your business, then you report it all. As you should do.
I am not gonna tell you or anyone else how much i make, thats my business. But yes i report everything i sell. If i sell locally i collect sales tax and pay that in to the state. Yes i provide recipt for every sale i do. 

This is also one of the reasons i created an LLC, that way i have more saying and more rights later on, but also more obligations. And i don't have to worry about doing anything illegal.

I don't know what your intention is with this post, but if you plan on doing all the sales under the table, then you have to look over your shoulder every time. And  another thing is, if you don't do it in a legal way, how do you expect to write off exspenses?

I use a TN registerd CPA for my business, and i would not do it any other way.

Re: Who is legit and how do you prove income? Ect.
« Reply #2 on: April 07, 2011, 09:41:00 AM »
You cant prove income if the biz isnt legit. lol. It would be a sole proprietorship so I would just claim all the income on my tax return at the end of the year and that would show income for the year before, but that doesnt really help showing income throughout the year. As far as taxes with the govt how does that work? When do you repay the tax from the items sold? And how do yall keep track of what is to be paid to the govt? Do you just keep like a log book with the description, price and tax? Thanks

Re: Who is legit and how do you prove income? Ect.
« Reply #3 on: April 07, 2011, 10:44:12 PM »
Sales tax you have to pay according to state guidelines.
I get the feeling that you do no want to report everything, and that you more or less are willing to do shady business.
But thats up to you. For everyone else it is damn easy to report taxes and sales monthly.

You mention SPS company, you still have to register as a SPS company. Both with the IRS and state.
If you go across state line and do auctions, you might even have to register a DBA in that state.


Re: Who is legit and how do you prove income? Ect.
« Reply #4 on: April 08, 2011, 09:51:32 AM »
Is no one reading my posts? haha. Im asking HOW? And what does SPS stand for? How do you report taxes monthly ect...

Thanks

Offline MovieMan

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Re: Who is legit and how do you prove income? Ect.
« Reply #5 on: April 08, 2011, 09:55:17 AM »
Is no one reading my posts? haha. Im asking HOW? And what does SPS stand for? How do you report taxes monthly ect...

Thanks

My guess is that people who are not responding don't wish to share how they handle their finances.

Re: Who is legit and how do you prove income? Ect.
« Reply #6 on: April 08, 2011, 10:15:33 AM »
I dont care how they handle them, im sure most on here are illegal in some way. But if thats the case they wouldnt know anyway. I just want to know the correct way things are supposed to be done.

Re: Who is legit and how do you prove income? Ect.
« Reply #7 on: April 08, 2011, 04:54:17 PM »
SPS is Sole Proprietorship. Thats the least category for a business license. As to sharing how to set up, take taxes, pay taxes etc etc that changes by state and sometimes even local laws so check with your state and the IRS or better yet, consult with a CPA for a couple hundred bucks and get yourself legal. Personally I don't mind helping out and answering questions in a general manner but don't want anyone to rely on my laymans advice especially where legal matters are concerned. I'll tell you this, I formed an LLC (limited liability corporation) just for some of the basic protections it gives you in as much as your personal property, possesions, finances etc cannot be touched in case of business failure or even in the event some moron sues you cuz you gave them a hot cup of coffee (oh that happened to mcdonalds...lol).

Re: Who is legit and how do you prove income? Ect.
« Reply #8 on: May 02, 2011, 02:07:21 PM »
Yea bud you need to go to an office max or office depot and pickup a bookkeeping book,. maybe get your sales reciepts personalized so ppl will know how to contact you for other items, and get a few hundred to a few thousand reciepts, make some logs on paper if you cant find the right book keeping book.,

Record every sale, every buy, everything. then take it to your cpa! Bada Bing Bada Bamb, its done! The right way!

Oh you do this every quarter, or every 3 months! Consult with your cpa of choice to get dates set up, hope i helped ya bud.

I can see a fish in distress from 100 miles away, i can tell you needed some helping advice, Good luck!

Offline jrossjr79

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Re: Who is legit and how do you prove income? Ect.
« Reply #9 on: May 02, 2011, 02:41:18 PM »
Yea bud you need to go to an office max or office depot and pickup a bookkeeping book,. maybe get your sales reciepts personalized so ppl will know how to contact you for other items, and get a few hundred to a few thousand reciepts, make some logs on paper if you cant find the right book keeping book.,

Record every sale, every buy, everything. then take it to your cpa! Bada Bing Bada Bamb, its done! The right way!

Oh you do this every quarter, or every 3 months! Consult with your cpa of choice to get dates set up, hope i helped ya bud.

I can see a fish in distress from 100 miles away, i can tell you needed some helping advice, Good luck!

Alot of that information you can get for FREE from the IRS itself. They wont do the taxes and book keeping for you, but will provide all the info free. I think they still offer a calendar that has all the need to know dates on them as well. I got one 2 yrs ago for free, but have not requested one since.

Like was posted earlier, keep receipts on EVERYTHING. Meals while out there working, gas receipts, sales receipts (both from buying units, and sales of EVERYTHING), trash dump receipts, donation receipts, cell phone bills (if use for work, at any time, a percentage can be used for tax deductible), any kind of labor cost (must be able to prove, either through claiming them as an employee you hired (check with IRS, lots of things have to be done), or a receipt for a contract worker. Simply put document and save everything.


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