Question about taxes on my startup

[Throwdown1212]

Tax question answered thanks so much.

 

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[AmyQ]

Hi Throwndown,

Congratulations on your startup! Let me say, that I am not accountant, but I do manage the finances and taxes of a business. You should be able to expense these costs, which means you would not pay taxes on them. You should only be paying taxes on your net profit, not your gross. If it were me, I would expense this as an content provider and pay them as independent contractors.

One thing to keep in mind is that you will have to collect a W-9 and send out a 1099 for any non corporate entity that you pay more than $600 a year (unless you pay them by credit card). Get the W-9 BEFORE your payees the $600 threshold (simply go to irs.gov to get one). Once you have a W-9, you can issue a 1099 for the year, which is due by Jan 31st.

Also, make sure that you set up a capital account in your books and account for any money that you invest into the business into it. That way, you will be able to pay yourself back for any start-up costs without tax consequences. Keep receipts to document.

 

[Ravens_Shadow]

Would've been nice if you kept your questions up however. :/

 

[splok]

Tax question answered thanks so much.

Thanks so much? You appreciate the help so much that you prevent anyone else from learning from the thread you started?

 

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[Boyd]

Um...where is the original post?

Other people may have had the same question and could have benefited from hearing about your situation.

 

[MJ DeMarco]

Tax question answered thanks so much.

I suggest you put your original question back up. Actually, I don't suggest it-- I am requiring it.

Don't steal from the forum.

 

[Runum]

Would have been courteous to have left your original post for others to see. We consider this a form of stealing.

https://www.thefastlaneforum.com/forum-news-updates-faqs/46702-delete-thread-please-dont-ask.html

 

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[theag]

This will keep happening until you finally turn off OP editing.

 

[Vigilante]

And a word to the forum members. When you reply to a newbie, reply with his/her OP in your response as a quote so that it is captured for posterity.