Tax Planning/How tax works for businesses
Hi there, 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.
Yes, you can keep it simple. Best is to keep track of all your income and expenses along the way in your computer or a notebook. Than when you do your taxes you'll have a good idea of how you did. You don't have to register anything, just use your social security number as a sole proprietor. TurboTax or any of the tax software programs will work for you and get all your income/business expenses in the right place. No need to incorporate until the business gets really big - like hundreds of thousands - and some people still just use their social security numbers instead of a corporate tax number.