I'm having trouble figuring out all the taxes I need to pay.

[NW Rabbit Equipment]

I am also having trouble figuring out HOW to pay those taxes.

What I already know:

I've obtained a Business License from the WA State Department of Revenue. I've also created an online account with them to pay all of my state taxes electronically.

I have also obtained my EIN from the IRS --> I'm incredibly confused as to what I'm supposed to do with this number.

My Business License application for the City of Everett is all filled out and I am just waiting to turn it in to the City Clerk's office.

What you need to know:

I am a sole-proprietorship and have no employees.

My work is in manufacturing; I make animal cages from welded wire.

My expected annual income is less than $12,000. This is just a side business until I can make it more than that.

I will be working out of my home.

My questions:

What are all of the taxes that I need to file?

How do I go about filing those taxes?

This forum seems like a wonderful place. I look forward to getting to know all of you.

Thank you,

NW

[Wozcreative]

Why haven't you contacted an accountant yet? These are basic things that an accountant would be able to tell you/do for you.

[huggytree]

my accountant helped me get this all handled...he setup quickbooks for me and taught me how to handle all the paperwork.

[jamesray50]

Hi NW - Your are correct about this forum. It is a great place to get good information. The people on this forum have helped me tremendously.

Is your accountant going to do your taxes for you? Your EIN is a tax identification number for your business. Similiar to your SS number being your personal identification. Use your EIN anywhere a form asks for your SS# or EIN.

As for taxes to be filed, you will file a Form 1040 with a Schedule C. The Schedule C will show the profit or loss from your business. I'm not familiar with your state, but you may need to file a state income tax return, and maybe a Net Profit return for your city and county. If you don't want to ask your accountant, you can search your State's revenue site under businesses to see what is required. Do the same for your locality.

But, honestly, if you don't know anything about taxes it would be in your best interest to have an accountant do it. To minimize the cost, have everything ready and in some sort of order.

Hope this helps and good luck!