Self-Employed money related questions

[Camman]

Hello everyone, this thread is my attempt to try and pull some info out of the self employed/small business owners around short-media.

I have been saying I was going to start up my own small business for PC repair, maintenance, and light web design work for quite some time. However, just recently I applied for a job a computer company that did this type of work and I'm fairly certain that they aren't going to hire me because they posted a job which included skills I had but when I went in for the interview they wanted me to have programming experience and database knowledge and things like that and I told them my training was primarily in hardware, and even if they do hire me, it's a 10-20hr/wk job, so I'm not sure if I even want it. But, going into their office and doing the whole interview and everything really got me motivated to start into my business idea again. My big concern is taxes and dealing with businesses.

I have been reading a book about starting a business and they recommended I check the IRS site, and I went over some of their video tutorials and theres ALOT of information to know. Even after having done all that I'm really unsure what I need to do. I was told by someone that I have to give any business I do work for a certain tax form if it's over a certain amount.

What do I have to provide to a business that I do work for, regarding taxes? Can I get QuickBooks and keep all my records in there and have a place like H&R Block handle my tax issues? How do I determine what amount I need to contribute for Social Security and Medicare, and what do I do with that money?

I intend to run this a sole proprietorship and I'll be operating it completely myself for now. I'm going to be filing my DBA this month so that I can operate with the name I've sort-of been using for the little work I've done thus far. Is there any good resources that any of you know of that are dumbed-down (i know VERY little about tax laws, and reading all this stuff has almost intimidated me out of wanting to start my own small business) to explain what I should do, and do any of you have similar experiences you'd like to share with me?

Any help and info from small business owners and self-employed folks around here is greatly appreciated. I really feel like I could run a successful business with the knowledge I have and I'm really ambitious to do it, but these tax and money issues are kind of the road block for me right now because I just don't know how to approach it and everything I have read so far has been way over my head.

[maxanon]

There must be a business association where you are that can put you in touch with some clinics probably run somewhere for new entreprenneurs. Barring that, they can refer you to an accountant that would get you up to speed relatively quickly an be well worth the money.

[Clutch]

There should be a SCORE office in your town or near your town. Go there and talk to them, they will give you some reading material and tell you what you need. I did that when I was doing my little computer repair business.

[primesuspect]

forget taxes. Just do what you do and leave all that crap to the accountant that you will definitely need to hire if you want to make a go of your own business. I wouldn't waste any stress on it.

[Camman]

well I still need some info for getting started though, I mean, you were the one who actually told me that if I did work for somebody over like $500 I had to give them some tax related thing. Or will I be okay if I just start doing work and just keep records of everything and once I get some customers and have a little bit of cash flow talk to an accountant??

[primesuspect]

Or will I be okay if I just start doing work and just keep records of everything and once I get some customers and have a little bit of cash flow talk to an accountant??

That's what I would do. You'll have to get an accountant no matter what at the end of the year. So in october I would start researching it, and by november you should have one picked out so that you have a couple of months of flex time to get your accounting situation straightened out.

[Tex]

For gods sakes I have done this for over 20 years as a independant and the best money you will ever spend is in finding a GOOD accountant. And they are like mechanics. They are not all created equal. Some are MUCH better at legaly knowing and finding ways to reduce the tax's owed. Try and get a referance from someone else in your area! Keep every receipt for anything REMOTELY connected to your buisness from paper for your laser printer gas receipts for your car or car repairs etc.. Let a GOOG accountant sort it out and see what they can do. The better receipts and records you keep the better.

You do not want to do anything not allowed but you want an accountant thats creative and knows ALL the ways to legaly reduce or get around tax's and they can get pretty creative with expenses and stuff for a small buisness.

And thats why I suggest looking around and talking to several differant ones before selecting your accountant. Let them file all the quarterly papers etc..

Tex