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Tax Planning/Question about tax for business

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Question
Hi Owen, this may be a stupid question but found this website, and thought it can provide some direction.

I am planning to start my own video production company, just by myself filming small events (small birthdays, parties, ceremonies, etc..nothing big). I am wondering if I can just collect the payment $ in cash and not go through the whole tax process....or is it better to register as a business and pay tax + use expense as deduction?

I am new to this and any suggestion would be helpful. thanks.

Answer
Ram - I am not familiar with how taxes in Canada work.  I am only authorized to comment on US taxes.  In the US, income from all sources is taxable so, yes, you have to report it and pay taxes on it.  But if you have expenses that are ordinary and customary in your business, you can deduct those against your income.

I hope this helps.

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OWEN S. ARNOFF, EA

Expertise

As an Enrolled Agent, I am fully capable of providing tax advice as it relates to personal and business income taxes. Enrolled Agents are the only Federally licensed tax practitioners and are admitted to practice before all administrative functions of the IRS. My specialty is working with small business owners who file Schedule "C" and helping them to structure their business in such a way as to maximize as many tax advantages as possible. I also enjoy working with individuals who have both routine as well as complex tax situations. I prefer to concentrate on individuals and small business tax planning.

Experience

I have a 25 year background in financial services including tax, bookkeeping, insurance, real estate and securities. I was previously the Chief Financial Officer of a local and national franchise organization. I am currently semi-retired, but used to own (in partnership with another EA) an individual and small business financial engineering firm where I work with nearly 2,500 individuals and small business owners in nearly every state and almost every continent, assisting them in all aspects of their tax and financial well-being. I have prepared or reviewed more than 8,000 tax returns in my career.

Organizations
National Association of Tax Professionals

Publications
http://www.amazon.com/Owen-Arnoff/e/B00BLRIZNU/ref=ntt_dp_epwbk_2

Education/Credentials
Enrolled Agent, Admitted to Practice Before the IRS, Accredited Tax Preparer, Fellow of National Tax Practice Institute, Certified QuickBooks ProAdvisor (1999-2011), Sleeter Group Certified QuickBooks Consultant, Life & Disability Insurance Agent License (California, Texas, Maine), Real Estate Agent License (California); Many years of continuing education in all these fields.

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