Post by fernwood on Dec 16, 2019 7:42:33 GMT -5
Am seriously thinking about creating a LLC for jewelry/lapidary.
Had one in the early 2000's for my photography business. Am familiar with WI requirements, EIN, Seller's Permit, etc.
One of the challenges then, was the monthly sales tax payments. My partner and I included sales tax in the pricing. It was up to me to determine how much of a sale, say $100.00, was income and how much was sales tax.
At the time, checks had to be sent in monthly for the sales tax.
Now, they can be reported and deducted online.
For the past three years, I have been operating as a DBA. Just reporting income/expenses on annual income taxes.
How do you handle sales tax?
Another question about reporting expenses.
Since no receipt is often received from purchases of rocks/slabs, how do you document that? I have been recording items purchased, date of purchase and photos.
Doing the same for equipment/supplies.
Have been recording all time spent on individual pieces. Paying myself $10.00/hr. Do not report the income until the piece is sold. For each piece I record: Cost of materials. Any associated costs, such as postage, travel time, etc. My hourly rate. Electricity used (estimate). Estimated cost of grits, polishes, Dremel bits/pads and anything else used. At times some are less than $.50. Estimated internet costs for time spent promoting the item. Recording sales tax paid on supplies. Since I do not have a paid internet sales page other than FB, that simplifies things a little. My overhead is the time spent documenting the above. What am I forgetting? Should I be paying myself for time spent at shows?
A good artist friend (local) of mine recently got in trouble for "illegally" running a business. At the time, Wisconsin was looking at ways to offset payments to big businesses, by attacking the small businesses. My friend is slowly paying off about $10,000 to the State, for fines, interest, back taxes, both sales and income. She was reporting income/expenses in the DBA fashion. Not paying any sales tax. She gave me the heads up to be sure I was doing everything proper.
Would appreciate any advice.
My sales for this year are about $1000.00 so far. Expenses are over that.
Thank you.
Had one in the early 2000's for my photography business. Am familiar with WI requirements, EIN, Seller's Permit, etc.
One of the challenges then, was the monthly sales tax payments. My partner and I included sales tax in the pricing. It was up to me to determine how much of a sale, say $100.00, was income and how much was sales tax.
At the time, checks had to be sent in monthly for the sales tax.
Now, they can be reported and deducted online.
For the past three years, I have been operating as a DBA. Just reporting income/expenses on annual income taxes.
How do you handle sales tax?
Another question about reporting expenses.
Since no receipt is often received from purchases of rocks/slabs, how do you document that? I have been recording items purchased, date of purchase and photos.
Doing the same for equipment/supplies.
Have been recording all time spent on individual pieces. Paying myself $10.00/hr. Do not report the income until the piece is sold. For each piece I record: Cost of materials. Any associated costs, such as postage, travel time, etc. My hourly rate. Electricity used (estimate). Estimated cost of grits, polishes, Dremel bits/pads and anything else used. At times some are less than $.50. Estimated internet costs for time spent promoting the item. Recording sales tax paid on supplies. Since I do not have a paid internet sales page other than FB, that simplifies things a little. My overhead is the time spent documenting the above. What am I forgetting? Should I be paying myself for time spent at shows?
A good artist friend (local) of mine recently got in trouble for "illegally" running a business. At the time, Wisconsin was looking at ways to offset payments to big businesses, by attacking the small businesses. My friend is slowly paying off about $10,000 to the State, for fines, interest, back taxes, both sales and income. She was reporting income/expenses in the DBA fashion. Not paying any sales tax. She gave me the heads up to be sure I was doing everything proper.
Would appreciate any advice.
My sales for this year are about $1000.00 so far. Expenses are over that.
Thank you.