Mon, 31 August 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
All businesses must pay taxes, including startups.
Taxes include payroll and social security taxes which are based on the salary of employees and paid monthly.
Even if your business is not yet profitable you still must pay these taxes.
Contractors pay their own payroll taxes and receive a 1099 Form from you at the end of the year.
Income taxes are taken from the results on your profit and loss statement.
You can check with the IRS on the current tax rates.
You can carry forward losses from one year to the next. You’ll need to set up a separate tab in your spreadsheet to track carryforwards.
Check with your accountant about setting up quarterly tax payments if you are running profits.
If you file as an LLC and take an S-Corp designation, then your business taxes will be transferred to your personal taxes.
Direct download: EG_July_2020_Startup_Funding_Espresso_--_Financial_Projections_-_Taxes.mp3
Category: -- posted at: 1:46pm CDT