Need tax advice or tax referral

[wnaplay1647545503]

My wifes cake shop is a whole different beast than what I am into and her tax needs differ so far from mine that I dont know where to begin. I would like to be able to manage them myself. Does anyone have a person they use for small business tax services or has gone through this themselves? We have equipment, rent, invoices, pretty much everything my own business' have never had to deal with. Any help/advice is appreciated. Thanks

[Miller]

what sort of entity is her business?

[zeitgeist57]

Mark Masserella... The accounting department.

 

Tell'em Clay sent ya. 614-759-9967.

[TTQ B4U]

My wifes cake shop

 

what sort of entity is her business?

 

[wnaplay1647545503]

Zack she is an LLC. Clay I will contact him this week. I should have mentioned that whoever is suggested must be reasonably priced. With this the first year of actually being legitimately opened there isnt a huge budget to hire someone. The guy next to us stated he pays $4500 on his accountant for tax services and payroll. That seems crazy for his small bakery and for us I dont know if she will even have that much in profits let alone be able to afford to pay someone a similar amount.

[zeitgeist57]

Zack she is an LLC. Clay I will contact him this week. I should have mentioned that whoever is suggested must be reasonably priced. With this being the first year of actually being legitimately opened there isnt a huge budget to hire someone. The guy next to us stated he pays $4500 for his accountant for tax services and payroll. That seems crazy for his small bakery and for us I dont know if she will even have that much in profits let alone be able to afford to pay someone a similar amount.

 

Talk to mark. See how much he'll be for what you need...

[GilbWs6]

Leo Popkie at LM and Associates

 

He's a retired IRS agent. Will find any loophole available.

[Miller]

 

What, did I say something wrong?

 

Jason, if your wife is operating an LLC by herself she should be taking advantage of the "flow-through" taxation. She'll avoid double taxation: if she treats it as a corporate entity she has to pay for individual tax and the company. Technically, if you know how to do basic taxes you should therefore be able to complete hers if done this way by filling out your Section C on the 1040 form. If the company's been in business and hasn't done so like this in the past you may reelect by using an IRS form 8832 - this is an Entity Classification Election form.

 

If you have someone else do this for you you're looking between $250 for the schedule C and 500+ for any sort of corporate taxation. The $4,500 you stated previously is only because that Accountant was performing payroll as well. It's easy really, you need to supply the profit (or loss) on the forms so a proper set of bookkeeping should provide you the numbers you need (your retained earnings are taxed too if she's holding on to anything). Did you guys use an Accounting software or did you manually keep track?

Edited May 13, 2012 by Miller

[wnaplay1647545503]

Manually right now. I have heard that with all the equipment we get to deduct wear and tear each year. This is the sort of thing that confuses me. Not to mention all that went into the buildout.

[Miller]

Manually right now. I have heard that with all the equipment we get to deduct wear and tear each year. This is the sort of thing that confuses me. Not to mention all that went into the buildout.

 

Yes, You can depreciate the value of your equipment for a tax break. There's also a handful of credits out there too. http://www.SBA.gov will help you out finding some of them. If you did it manually you definitely need an Accountant and you would do yourself a favor by setting up with some software and teaching yourselves how to handle. I can get you on your way with taxes this year or you can ask me any number of questions if you tackle it yourself. I highly recommend getting yourself Peach Tree, Quickbooks or GnuCash (free but not user friendly).

 

Did you file an extension I hope?