Taxes for bloggers should be handled as if you're running a small business. Here's my detailed guide on how to do taxes on blog income (and blog tax tips).
For income tax purposes, the IRS treats the business as a partnership by default. Instead, an LLC is taxed as a “pass-through” entity, meaning that income taxes are passed through to its owner or owners, who are known as “members.” Members individually report income and losses from...
Many business owners must pay estimated taxes on business and self-employment income. How to calculate estimated taxes, and how and when to pay them.
“A salary can provide a steady income and predictable tax deductions for the business, but it means higher payroll taxes,” wroteCunningham & Associates, LLC. “An owner's draw may offer more flexibility and lower immediate tax liability, but it requires careful tax planning to ensure self-em...
You can calculate your estimated taxes for the entire year by dividing them by four to get the amount you need to pay quarterly. You can use IRS Form 1040-ES to complete this calculation, or utilize different finance calculators and software online, such as TurboTax. ...
Paying taxes four times a year sounds onerous, but it actually eases the burden of year-end taxes. Plus, the penalties for not paying quarterly taxes on time should convince you to get it right.
Regardless of the form you use, you generally calculate your taxable business income in similar ways. TurboTax has two products to serve business owners—TurboTax Home & Business is designed for sole proprietors and 1099 contractors, while TurboTax Business helps you prepare taxes for corp...
Step 5: Filing a Tennessee LLC EIN The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or an...
For More Information, See My Related Book: Independent Contractor, Sole Proprietor, and LLC Taxes Explained in 100 Pages or Less See it on Amazon. Topics Covered in the Book: Estimated tax payments: When and how to pay them, as well as an easy way to calculate each payment, ...
Small businesses are expected to pay estimated taxes at the end of each quarter. Unlike individual income taxes, which are paid annually in April, it’s up to businesses to calculate their estimated taxes and pay them every three months. If you miss these quarterly payments, your business ...