Business License Needed if I'm an IC

Business License Needed if I'm an IC? [2007-11-12]
Hello everyone, I I HAVE to operate under a name? What are the benefits and drawbacks in doing so? Does anybody have information on resources where I can go to research this? Or does anybody out there have any experience related to my situation? As you can see, I'm looking for ANY advice. I'm new to all of this...but so excited! Thanks in advance, Liz in Oklahoma

When I was an IC, I was advised to stash sm [2008-08-05]
away 30% of my gross, too. Don't forget you'll be paying self-employment taxes, too. To make this easier for me to do, I had two checking accounts. As soon as I got paid, I'd deposit that 30% into the second account and try not to touch it until I paid my quarterly taxes. And, yes, you pay quarterly. The IRS will send you the estimated payment forms for each quarter after you file the first time. Suggest you make a copy of your check with the form before you mail them out. It might be worth your while to make an appointment with a tax expert (HR Block, for instance) and get the scoop from them. They were a big help to me. As far as deductions, save receipts for every single thing you purchase necessary for you to do your job. Save your phone bills, receipts for reference books, your electric bill, etc. You will be able to depreciate your computer, desk, chair, etc. Have a separate folder handy for these and just drop them in as soon as you spend any money on your business. When you get your taxes done, bring your property tax bill and measurements for your entire home and office. Block gave me handouts with all this stuff on it. An appointment with an expert will really be of help. As long as you stash away that money faithfully and keep track of receipts and expenses, you'll find IC is not difficult at all. It's all about being organized and keeping everything in its place. Good luck to you!

Business License Needed if I'm an IC? [2007-11-12]
Hello everyone, I I HAVE to operate under a name? What are the benefits and drawbacks in doing so? Does anybody have information on resources where I can go to research this? Or does anybody out there have any experience related to my situation? As you can see, I'm looking for ANY advice. I'm new to all of this...but so excited! Thanks in advance, Liz in Oklahoma

I would check www.oklahoma.gov [2007-11-12]
I I live in a different state, but I found lots of useful information/phone numbers on my state Good luck to you in your new business!

Are you an IC with 1099's [2007-07-30]
If you were an IC, then you need to do schedule C (self employed) where you take your deductions from your business gross income. These deductions are completely separate from your personal deductions. If you have absolutely NO deductions, am not sure if you can then just do the SE form to figure out what your your self employment tax is which is your social sercurity. If you do the Schedule C - you then figure what your net income is from your business and pay your 15.75% on your net income which then goes on Schedule 1040 to be added onto your personal income tax. But you should have some deductions, phone, internet, mileage to bank, computer, etc to offset your income. Patti

Self employment tax [2007-04-11]
This is just social security. You pay the entire amount of 15.75 but it is on your net income after all your deductions. That is why you have to take advantage of every deduction you can for your business. As am employee you pay 7.5% and your employer pays 7.5%. Since you are the employee and the employer, you pay the entire amount. But get a good tax book and see what deductions you can take and plan for next year to take as much as you can legally.

Per diem seem message [2007-03-27]
You can take the per diem but sometimes there are limits. I would suggest investing in a tax book such as the J.K. Lassiers Small Business Tax book. I have used that book for a few years and it explains the per diems versus actual expenses extremely well...including limits and exceptions, etc. This by far has been the easiest to understand.