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Tax Question for very small business

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hit55brooks

Junior Member
What is the name of your state?PA

I ahve a small business which has been open for a month now. I sell sports memorabilia over the internet. I have no employees and do everything myself. When i registered with the state I di not need to apply for an EIN. I am using my SSN as my tax ID. When I file for personal income taxes next year do i just get taxed on the profit I make? I am very straight forward with my money. all my expenses go on one business credit card no personal purchases go on there and all the money i make goes into my business checking account. Basically Im curious how the taxes work with this. Any help is very much appreciated. Thanks
 


setvector

Junior Member
EIN helps with identity theft. LLC helps for taxes

I'm in a similar situation as a small business. I researched the heck out of S-corp, sole prop, C-corp, etc. and decided to make an LLC.
I filed for an LLC in Colorado which in my mind is the best way to represent yourself as a sole-proprieter/self-employeed entity... and it costs 99 cents if you do it online!
Basically as an LLC, you are able to use your SSN like a EIN and file all your income/losses on a Schedule C come tax time so it simplifies all that. And you are taxed similar to an s-corp in that your income is "pass-through" to your taxes and you aren't double-taxed like a C-corp is.

However, in the interest of identity theft (with advice from my tax advisor) I did get an EIN for my LLC, and a separate bank account (Compass Bank has free business checking with no min. balance). I got the EIN because you'd be giving your SSN out to everyone that owes you money. You want everyone looking at your SSN?

I haven't had the "privilege" of doing taxes for my LLC yet (I just started this year), but I used to do Schedule C's when I was sole-proprieter. Any tax program will have the tools and forms to step you through all that.


hit55brooks said:
What is the name of your state?PA

I ahve a small business which has been open for a month now. I sell sports memorabilia over the internet. I have no employees and do everything myself. When i registered with the state I di not need to apply for an EIN. I am using my SSN as my tax ID. When I file for personal income taxes next year do i just get taxed on the profit I make? I am very straight forward with my money. all my expenses go on one business credit card no personal purchases go on there and all the money i make goes into my business checking account. Basically Im curious how the taxes work with this. Any help is very much appreciated. Thanks
 

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