Tax Hints and HelpMany people fear taxes - but it really isn't that bad. There are millions of people who run small businesses from their home. The IRS has really tried to make this as simple as possible.
In general, in the US, you simply file your normal form 1040 - and add on a Schedule C. You don't need to be an INC or LLC or anything else. You just need to have made extra income with your little business.
A Schedule C is simply an additional form that lets you describe the money you brought in from your side business, and the money you paid out. You can deduct ALL sorts of things - from the electricity used to heat your office area of your home to the computer you bought to do your finances on. You can easily find that your home business - even in its early days where you earn very little - helps your overall tax situation a great deal.
Be sure to keep your records! And be sure to get a second bank account, even if it's just under your own name. The more that you separate out 'business' finances from home finances, the more happy the IRS will be with you. Also, in your own self interest, having separate accounts will make it easier for you to keep track of what is going on.
Keeping Tax Records
Quarterly Estimated Taxes
Home Business Deductions
Tax Form Information
1040 and Schedule C
1099s, Contractors and Employees
Getting a 1099
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QuickBooks and PeachTree for Accounting
Where Does Our Money Go?
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