On this episode of the podcast I answer, tax filing questions from my Facebook group, Braden's Besties.
This episode is brought to you by my FREE Tax Challenge. Taxes suck but we all have to file them. I'll walk you through the 5 steps you need to get your tax documents organized and ready to file. Sign up for this free challenge.
Here are this week's questions:
1. My husband and I had an LLC that we closed last year (or didn't renew, or whatever the appropriate term is) and my current CPA is asking for a final K1 for that LLC. That didn't even occur to me, and as it files as an S-Corp, I'm pretty sure we've missed the due date. My current CPA asked me to go back to my previous CPA who had provided K1s for that business in the past - but I'm not working with her anymore and it's the middle of tax season and I would feel really really bad asking. Is this something that I could maybe do myself? I'm pretty sure it would just be expenses with zero revenue. If I can do this myself, what kind of a form should I be looking to fill out? - submitted by Stephanie L
If by previous year K1 you mean for your 2020 income you still need to file that income, if you are talking about the one from 2020 that you would have received for your 2019 taxes then you will need to ask for it, don't feel bad. If you are talking about the one for 2020 you would still need to file your taxes to create the K1. If you had an S-Corp you have to file an IRS form 1120S.
2. I'm a Colorado wedding photographer and my accountants don't handle my sales tax, I've listened to your podcast but am still unsure if I need to be paying sales tax for my digital goods. - submitted by Jenny S
Start by Googling Colorado sales tax rules for digital goods for general direction. You can also tag sales tax expert Amy Monroe in the Braden's Bestie's Facebook group for help with your question.
3. If I am using a third party for photography products like Pic Time and they take care of product taxes, what do I claim? - submitted by Nikki H
If by product tax you mean sales tax, generally platforms like Pic Time collect the sales tax but you would still need to file a sales tax return. You would get all your information from Pic Time and you would use that to file your sales tax return depending on the state you're in.
4. I’m just starting a business and have no idea where to start! - submitted by Taylor C
I recommend all new business owners go watch my free masterclass Legally Launched. This training is targeted at brand new business owners.
5. If I do work in TN and NYC do I have to file in both states? - submitted by Katy W
Short answer, probably yes. NYC is pretty notorious for steep taxes. If you work in one state and do remote work for people in another state then it tends to be different. If you are self-filing the program should walk you through by asking what state you live in and what other states you do work in. I highly recommend signing up for my free tax challenge to walk you through this as well as walk you through filing with H&R Block.
6. How do we pay taxes when 2 or more businesses are collaborating on one project? - submitted by Debra W
This is a tricky, layered question. Ideally you don't want to go into joint ventures with people in a partnership capacity because then you would need to get a business license together and it's like creating a whole new business and oftentimes that's not what we want. The easiest way to do this is to have one business owner be the contracting party with the client and then they pay you as a sub-contractor rather than the client signing on with both/all of you.
7. For quarterly taxes will I get something in the mail or do I need to visit the IRS website for a form? Do I mail it or how does that work? I do personal taxes through turbo tax. - submitted by Stacie C
For quarterly estimated income taxes we don't file quarterly returns, we make estimated payments. For more information on how, when, and how much to pay for quarterly estimated taxes visit my Quarterly Taxes blog post.
Join the Braden's Bestie's Facebook group to have your questions answered on the podcast.
Have a follow up questions or want to meet some fellow kickass biz owners who also are trying to get their shit legit? Come be a bestie and join us in the Facebook Group.
You'll learn: what the three mistakes are; how to fix them; and also how to work with me to get your legal & tax shit legit.