Falcon
Full Access Member
Have a couple of questions regaurding taxes. Please let me know if anyone can give me some guidance. Thanks!
Any tax gurus out there?
- Thread starter Falcon
- Start date
LMSVPR
Full Access Member
Falcon said:
i think TNVIPER its a tax guru, if im not mistaken :dontknow: And so is Stinkers lady
correct me if im wrong....hope this will help, if im right lol if not? sorryyyy , i tried :elefant:
TNVIPER is forsure....don't know about Tony's old lady..... what's the question?
Falcon
Full Access Member
Well, a coworker told me I could claim buisiness expenses for my race team even though we haven't made any money this year. She also said that I do not have to have any business license, tix id number or anything to prove it. Just reciepts of the expenses. Checked with my daycare provider (she has a in home daycare) and she said that this is true. Just needed to have confirmation from a "tax guru" if we have any on here. Thanks!
RedSrt007
Active Member
Just out of curiosity, why would you run a business with no licence or fed ID? Figure it would be safer incase you ever need it for legal reasons.
Falcon
Full Access Member
RedSrt007 said:
Agreed, but most small businesses don't have anything, especially when they don't have employees. Once the team takes off a little more, I plan on getting an LLC and filing with the city/county/state.
RedSrt007
Active Member
Yeah, I gotcha...
Falcon
Full Access Member
RedSrt007 said:
Yeah....still doesn't sound legal to me...but I have talked to a few people that do it that way.
Operating without a License will get you in trouble and shut down by your local government your just asking for head aches if you get caught.... Get a License ,,, a fictitious name if required by your state. They are not expensive ..... Fictitious names in florida are $50 for 5 years and about $38 for a County business license for my business.Falcon said:
Falcon
Full Access Member
VIPR PWR said:
True...which makes them liable to lawsuits. Compared to LLC, where the corporation is liable. Example: if your corporation (LLC) is sued for $10 million, you wouldn't be able to lose your house or any property to pay it. Whereas with sole proprietors, you could. Since the lawsuit would be against you, not a corporation. But, with my situation, lawsuits is not a concern at this time. No employees and no "customers" per say. I am not performing any work for anyone, besides advertising. Though the advertising is a paid service. Only thing that makes me iffy about it is that if it is as simple as it seems, why don't I hear of more people doing it? Don't want to end up on the IRS hitlist...ya know.
Yes-you can write off your expenses even if you don't make a profit...Start-up costs etc...(.NOL, net operating loss ) .. You will have to show a profit at least once every 5 years in order for the Fed to consider you a busness and not a hobby...
Falcon
Full Access Member
VIPR PWR said:
Not saying your wrong, but I have talked to a couple of small business owners that do business from their home and they don't have any license or even a fictitious name or DBA (doing business as) as it is called in Arizona. Just seems too simple to me. Might be something within Arizona law. Guess I am trying to find it in writing but after searching for a long time, I have yet to find anything that says that you must have a license of any kind or anything prior to filing for claiming business expenses.
Falcon
Full Access Member
VIPR PWR said:
Definitely gonna contact a tax advisor before I do anything....just seems odd to me how easy it is.....if it is in fact that easy. I would think, especially in the car groups that I associate with, that I would hear of more people doing it. Thanks for the advice! If I find something in writing or talk to a tax advisor, I will post up my results. I know that there has to be a few people on here that could use this information.
Falcon said:
It is best to keep your Business and Personal dealings separate. If a customer writes you a check in the business name you will most likely need a DBA bank account to cash them...The IRS does look at home business as a red flag item..Just do it the right way to be ready for the worst case senario IRS AUDITS... Then you will be on their hit list...
My Brother tried to beat the IRS by cutting corners on 2 businesses and was nailed to a wall ---back taxes and penalties cost him over 200k on the last venture he WAS in.
Falcon
Full Access Member
Well, I talked to a tax advisor. According to them, as long as I am treating it as a business, with a plan of making profit in the near future, I can claim all my drag car expenses as business start up expenses. They told me to keep good records of all of my expenses and show proof of trying to gain a profit. In my case, the sponsorship packages that I have put together and sent out. They told me that at this time, since it is just me, I do not need an LLC or a business license or even a DBA.
Falcon said:
This was your best decision...you talked to a local tax advisor...most internet forums are the best place to get the worst advice when it comes to legal and tax issues....
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