Do all you BD's pay quarterly?

[Mikey P]

A unnamed CC who frequents these boards told me today that he was shocked to get a 34k tax bill this week.


I asked him if he underpaid on his quarterlies and his reply was: I never paid a cent all year...



Dumbass..


I think we'll need to enact Jeremy's' BDCCA fund to get this dude out of prison.

 

[XTREME1]

Starting next January I need to set up quarterly payments. My CPA is setting up the quickbooks and estimated taxes crap now. First year fulltime he said I won't make enough to worry. I am not taking a salary this year and just improving the business, so I will have enough write offs and cash in the bank to cover.

 

[ksokalski]

If you are expecting to not make enough your first year to not owe taxes...that means that your profit will be nothing. That is not a good goal to have for this industry.

Anybody who gets out there and moves their business along should be able to show a profit withing 3 to 6 months easily.

Kris

 

[XTREME1]

I don't plan on showing a profit for 3 years. Doesn't mean I am not doing business. I didn't say I wouldn't owe, I just won't owe enough to worry since it will be in the bank or equipment. Each business has a different goal and with my plan I won't be showing a profit.

 

[-JB-]

Been paying quarterly for years now, this year I got within $200 of a perfect estimate, yeee haaa! Owed the Fed.'s $400, got $600 back from NY State, very nice! This was the first time in 13 years (since we started showing a profit) that I didn't dread tax day, hell, I sent them out last Friday. Wheew! 8)

 

[Steve in Omaha]

Been there done that!

Been waaaaaaay behind the 8 ball with my Uncle Sam. He let me slide for a long time. First he would send me friendly reminders that got increasingly ugly. Then it got serious, took out a second mortgage and paid up. School of hard knocks a couple of decades ago. Been current ever since.

Take tax matters very seriously, you gotta have a CPA, clean his office and chairs if you can't afford him. Hell, clean his house and mothers house also, but get yourself a "tax guy".

Steve

 

[Guest]

My payroll tax in Michigan was $1400 every week and if I did not pay it weekly that meant I owned $2800 the next week. I figure it out every week at 30%o of profit.

 

[Guest]

We are Incorporated so we take taxes out of our checks.

Dave

 

[Charlie Lyman]

This is my first year full time. Last year I had my full time job taking enough out to cover taxes. My wife with her business degree has been on my ass to get the quarterlys done.

 

[The Preacher]

hiring a CPA was the best business move i ever made! best part is she goes to our church and has small children like we do so she understands what we go through!!!

 

[adamh]

A good CPA is worth every penny. My first CPA would take what I gave him and call it good. My new CPA has me writing everything off that I can. She saves me thousands!!!

If that guy got a tax bill for 34k he is doing huge money or his CPA sucks. He should take his stuff to someone else.

 

[Jeff]

Always try and pay quarterly!!!

Never underestimate a good CPA.

And if you can't, keep back 30% of profit to be safe, for Uncle Sam that way you should have extra after deductions. Use the extra for next year's first quarter and start the year ahead of the game. You'll never be sorry. 8)

 

[Steve in Omaha]

Ditto to Dave! Every owner of a business here should very seriously consider the many many advantages of being a corporate entity.

 

[J Scott W]

The goal of a good CPA should be to assure that your business breaks even every year. - Just on a larger scale each year.

Scott Warrington