Originally Posted by dclayton
I'm new and some of these questions may sound quit silly but, do you all have a seperate business set up? Are the taxes paid through the business or after you transfer it to your personal account as income? Is there any other way to do this except through a personal business set up?
Yes I will be asking an accountant but I need to get started first.
As the others said, there is no reason why you can't start out as a sole-p and then decide later. I would still recommend even as a sole-p you have a separate business account and run all busines income expenses through that account, for audit purposes. If you pay estimated self-employment tax, I would pay that out of the business account as a business expense. If you wait and pay at the end of the year then you could pay it out of either personal or business, because they will be combined on your personal tax return.
If you pay a tax preparer to do your taxes you can deduct the cost of filing the business forms (Sch C, Depr schedule, etc.) as business expense the following year, so make sure your tax preparer breaks out the cost for each form for you.