Anybody Ever Start a Business?

I don't know everything about it, but here, for me, working as a computer consultant, I had to get a state business license, a city B&O license, and I have to file tax statements (and pay taxes) quarterly to the city. If I make enough, I have to pay Estimated Self Employment tax to the IRS.

YMMV

 

A friend of mine started his own business and makes IPhone apps whitehuskysoftware.com . He is the creator of the famous Candy Heart IPhone app...famous around Valentines Day anyway.

 

My home business (in the software/support field) required a DBA from the state, and quarterly tax payments to the IRS. If I sold directly to end users (which I don't) I would also have to file sales tax reports. I let an accountant figure out the taxes.

It's worth it to me.

 

Look, being a W-2 employee is easy. Just report and either write a check or get a refund.

Self-employed (S/E) is another animal all together. It takes record keeping, being current on tax law, and you ARE the business meaning receptionist, accounting dept, profit and loss projector, and tax filer. Due to the extent of tax abuse in the past most taxing authorities are wise to any back door approach you can think of including front loading depreciation, claiming losses to offset other (W-2) income, and any other scheme you can think of. Best to go into business with the intent to make a killing than to hope to run a little cottage business with the intent of offsetting (avoiding) taxes. Hire an experienced tax accountant to get you up and going. You'll either pay the accountant now or pay later through unclaimed deductions and or audits and associated problems. Good luck!

 

I'm self employed. I'm smart enough to know, that I'm not smart enough to do the taxes. My best advice to you is ask your friends, relatives, and co workers who a good accountant is. Make an appointment with them now, not next April. My insurance agent help me set everything up for the business. Don't have much useful to add... Did you know that Stanford University has a course on writing i phone apps? It's available on i Tunes.

 

I've been self employed pretty much my whole life. Your business will need to make a profit eventually in order to take tax deductions. It use to be you had three years to turn a profit, don't know what it is now. Find out from an accountant what tax deductions are often flagged for audits. Home office usually is a major flag. Even if you are doing everything totally correct it's still a hassle to be audited. I've been audited several times and the IRS has always decided in my favor. I've never been to one of my audits, but it's still a lot of work, not to mention the cost of the CPA.

Do you really need thousands of dollars worth of computer stuff to develop a iphone app? Can you develop an app with what you have now or are you trying to justify (with a tax deduction) new computer gear?

A small business especially in a field you enjoy that makes a minimal profit and a side real estate rental are two really good ways to legitimately offset W2 taxable income.

If there isn't one, write an app for starting a business to make apps.

Good luck.

 

I'm headed to the porcelain throne for a little business right now. :rockon:

Wildkow

p.s. please do up a decent "Task" app!

p.p.d. whoever made "Wobble" must be rolling in the dough!

 

My son will probably buy it, when it comes out. His ipod touch is full of other useful apps.