I am opening a small business by myself. What income Tax Forms will I have to file for myself at the end of th

Question

I am opening a small business by myself. What income Tax Forms will I have to file for myself at the end of the tax year? Is it a W2 and a 1099? I am searching the net and can't find an exact answer. It is going to be a breakfast deli. Thanks for the help. I'm sure there is a small business owner out there with the answer.

Answer 1

If you have any employees, you'll have to give them W-2's. And you'll have to send in their withheld taxes, along with your match,  through the year, and also file a quarterly return of taxes submitted.  If you hired any independent contractors (not corporations) and paid them more than $600 to do work for you, you'll have to give them 1099's.  If you had either of these, you'll have to report the amounts to the IRS.

For your own tax return, assuming your business is not incorporated, you'll file form 1040, and a schedule C or C-EZ and schedule SE

Research at http://www.irs.gov/businesses/small/inde... for lots of info that will help you

Answer 2

Based on the information you have provided the best advise you could get from this or any forum is that you should seek professional tax and bookkeeping advise before you start.  Just deciding what business form you want to use (ie: incorporated vs sole proprietorship, etc.) is a really big deal that could cost you thousands.  Protect your investment with sound advise from professionals.