Business tax help!?

Question

Im thinking of starting my own business online, I took a business course but i have to admit im still lost! I heard that I was allowed to make so much money from my business before i have to get a business license is this true? ( i live in virginia) and i also need to know if i can buy one of those quick books programs to do my taxes from my computer? does it work the same as when i do my personal taxes? and also what records do i need to keep?

Answer 1

your business license is issued locally (check with city/county). if you set up as a sole proprietor you file an additonal two or three forms with your individual income tax return. why not use the free IRS tax stuff at www.irs.gov

Answer 2

Business licenses, as Mudbug says, are handled at the local or state level, and depend on the type of business, location, and other factors.  You may also need to get a state sales tax number.

Quickbooks is a good program for keeping track of your income and expenses, but for tax preparation you will need a separate tax program.  if you are a sole proprietor, you report your business income on Schedule C, and most personal tax programs will have that form.  For other forms of business, you will have to get a business tax program that has forms for partnerships and corporations.