I know nothing about taxation. Help.

[nyitdom]

All I know is that LLC is the best option for me.
What should i read, look after or watch in ordr to get a clearer understanding of all this. Making money has became clear to me, but how do I not get in jail for it is a complettely off topic that sadly school doesnt teach us. Books, videos that helped you, blogs, post, anything that has helped you understand taxes is useful. Please link it below or if you cant or dont want to look after link just tell me the name of it. No one talks about taxation sadly and this is possibly half of the business if not more in the beginning.

 

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[zbones]

Taxes are so broad in the US. For what you're looking for just google taxation of different business entities. FYI LLC is a legal entity, not a tax entity. For tax purposes an LLC can be taxed as a Sole Proprietor, partnership, or s-corp.

My advice is to find a competent tax accountant, keep the books clean, and just run your business. A good tax accountant will help you avoid paying penalties while ensuring you're not overpaying on taxes. Remember taxes should rarely affect a business decision.

 

[nyitdom]

Taxes are so broad in the US. For what you're looking for just google taxation of different business entities. FYI LLC is a legal entity, not a tax entity. For tax purposes an LLC can be taxed as a Sole Proprietor, partnership, or s-corp.

My advice is to find a competent tax accountant, keep the books clean, and just run your business. A good tax accountant will help you avoid paying penalties while ensuring you're not overpaying on taxes. Remember taxes should rarely affect a business decision.

This is an useful answer. How do I find a good tax accountant? What are the characteristics of one ?

 

[nyitdom]

Am I violating the commandment of controll if I have someone else do the law, tax and legality part of the business, but I do the all the others myself? Thereotically I expect half of profit given to him.

 

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[zbones]

This is an useful answer. How do I find a good tax accountant? What are the characteristics of one ?

In the US there are tax preparers and there are CPA's. I would recommend a CPA even though they're going to cost more. That's the bottom threshold in my mind. From there is depends on your risk tolerance. Do you want to take super aggressive stance, conservative stance, or the middle ground. Depending what you're business the stances you take will look different. Real Estate for example is one that could be a slippery slope.

That said get referrals for like 3 then get on a call with them and see which one you like the most. It's tough to find out who is a good CPA unless you get a referral or have them for a year. A sign that a CPA is good is that they'll proactively reach out to you around key dates (End of year, filing dates, quarterly payment dates). So that should look like at a bare minimum once in Nov-Dec and then once it's filed in Apr or Sept (depending if you file an extension). And from there are they actively helping you tax plan, which would look something like you tell them what you want to do with the business and they offer suggestions on how to go about doing it in the most tax efficient manner. Key items include capital purchases, buying or selling a business, acquisitions are the big ones where a good CPA will save you $$$ or lose you $$$.

Something to note is that you are responsible for the information you provide your CPA but the CPA is responsible to ensure they file the forms correctly, which is important because if you do get a penalty if the forms are not filled out correctly then the CPA should cover the fees. But if you withheld info or misrepresented the facts then that's on you.

 

[MJ DeMarco]

Am I violating the commandment of controll if I have someone else do the law, tax and legality part of the business, but I do the all the others myself? Thereotically I expect half of profit given to him.

Who is him? The tax man? Or the accountant?

 

[Johnny boy]

List out all of the things that need to be done in your company and organize by category. These will be “departments”.

1. Sales
2. Customer service
3. Logistics possibly
4. Finances
5. HR
6. IT
7. Legal

All of the actions that happen within these departments need to be assigned to someone.

What you do is create a job, and put these tasks under the responsibilities of that job.

You create an organization chart.

Maybe there’s only one person: you.

Maybe there’s more.

Our company has 7 different “positions”.

You could be me, the corporate manager.

You could be the company bookkeeper who has financial responsibilities.

The lawyer with his legal responsibilities.

An office manager with their HR, scheduling, billing, and other tasks.

A local manager with equipment, local HR, training, and other tasks.

A salesperson with their sales responsibilities.

Or a lawn care technician with their own responsibilities.

You should have a bookkeeper under part time employment (typically a monthly fee of like a few hundred bucks a month) and he should have his list of tasks and expectations within your finances department. It’s his job to reconcile accounts, submit reports, etc. It must be done by someone, and you probably will screw it up.

Once you have built your departments, listed and categorized all of the things that happen in your business, now it’s time to create standard operating procedures.

Record how to do each of those things that will be assigned to each role in your company, starting with the things that are most important and need clear instructions.

You can turn all of these collections of instructions into a manual, with video training, quizzes to test comprehension, regularly scheduled reviews, and KPI’s to measure how each role is performing.

This is all a perfect time to use the phrase: easier said than done.

This is all straightforward but super hard to have the discipline to actually sit down and complete it. Nobody does it.

But, if you can follow through, it’s how you systematize a business.

Also, remember with taxes…

It’s not that bad to be late. Oh no, slap on the wrist penalty.

It’s very bad to lie.

So if you have to choose between lying or being late, just be late. That’s how you avoid trouble, just focus on not lying.

 

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[nyitdom]

Who is him? The tax man? Or the accountant?

Its a guy who got me into crypto. He told me that he can help me with my business. The idea is that I do the business part (build, advertise, expand, etc) and he does the part that I cant (tax, legality and law side). I cant do it because I dont own any residence that I can link my business to. And as you have stated in your book that if we are not in control then its a risky business. Also I consider that the profit I could generate would be halved because of our agreement on this way of handling the business.

 

[Stargazer]

Based on what you have just written, perhaps you should give him a wide berth.

You don't even have a customer from how you are writing and you are worrying about Tax Consultants. You don't even need an Accountant at your level.

A Book Keeper, if that is what they are called where you live, can set up a simple sytem for you to input data for almost nothing. As in £50 to £100 in the UK and then £25 a month just to check your minimal invoices/receipts etc against what you have input. They'll already have simple speardsheets they can email you and talk you through or some simple software they use.

Forget the person trying to con you.

Dan

 

[nyitdom]

Based on what you have just written, perhaps you should give him a wide berth.

You don't even have a customer from how you are writing and you are worrying about Tax Consultants. You don't even need an Accountant at your level.

A Book Keeper, if that is what they are called where you live, can set up a simple sytem for you to input data for almost nothing. As in £50 to £100 in the UK and then £25 a month just to check your minimal invoices/receipts etc against what you have input. They'll already have simple speardsheets they can email you and talk you through or some simple software they use.

Forget the person trying to con you.

Dan

Understood. If I make progress I will reply to this message if you want to.

 

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