How much money can I make as a small business owner before having to report to the IRS?
I have a full-time job, but am considering starting a lawn service this summer to make ends meet. At what point financially do I need to start filing income taxes on my lawn business? Or would it be any, and all income from the business? Any info would be helpful. Unless it's links to the IRS site. Been there. Thanks a lot.
Just a little clarification. I am not trying to get out of paying taxes, but thought that the IRS allows very small portions to go untaxed. For example, if the neighbor pays me $10 to fix a leaky faucet, I seriously doubt the IRS wants to know about that. There's got to be a max that the IRS allows. I just want to keep my lawn business below that line. For $800/month extra income, I don't want to get into charges sales taxes, obtaining EIN's etc.....
You should report all your income when you file your taxes, the only way that the irs knows about how much money you make is if you get payed by a check. And if you get a contract too do individual lawn care at a apt. complex the complex will give you a 1099 at the end of the year.Its called expenditures , Now if you do the neighbors lawns half way down the block and they pay you in cash then who is too say or know how much you made from them.Cash is not traceable unless the person turns the money in at tax time.Home owners can do this , depends on how much money it costs them out of their pocket for the years end.don't try to cheat because it could backfire on you.Its up too you how much you tell the IRS what you make in cash or not. Now I know this you are allow to make up to $250,000.00 in a small Business per year.But if you go over that amount you will pay the Business tax of $13,500.00. Now you might want too look in to how much Business taxes are now in 2009 it could be more tax or less.Good Luck Honesty is the best policy !
YOU HAVE TO TALK WITH YOUR TAX MAN YOU CAN WRITE OFF ALL EXPENSES FOR I THINK 4 YEARSby mike g - 5 years ago
All of the income is reportable, there is no such thing as tax free income.by Landlord - 5 years ago
I would always recommend calling your local IRS office and telling them what you plan to do. they are not ogres waiting to pounce on you and will normally be very helpful and give you great advice. If you are open and honest with them then they are great. You will have to pay taxes on your profits but you can also claim deductions - your own business is a good tax tool.
for information on record keeping, tax deductions and more have a look at my web site - it is to help people choose and start their own business.