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Hey guys, what's up? This is my first post! I will briefly describe the business I want to begin, and I will have questions throughout the post. This may be long!!!
My fiance and I are wanting to start a cleaning business. She has worked for a maid service before, and knows the ropes (as far as pricing and the job goes.) I think I have a very good understanding on how to market, manage, people and I am an excellent worker (in my opinion.)
The main reason we want to start a cleaning business is the ease of getting into this business, financially. As long as the business is just me and her, it can be managed at home without the need of renting a space. Also, the initial cleaning supplies are cheap, and the pay isn't bad at all.
Sorry this will be a long post, I will get to my questions in just a minute!
Well, one thing I know for sure is that I want to be a very legitimate business. I want to pay my taxes (as though I was working for someone else), I want to have insurance, I want to have a business license wherever I need one, etc.
I work in the insurance field right now, so I'm not concerned about insurance. As far as licensing goes, I can call my local town hall and get licensed and such. I am not worried about these aspects of the business.
However, I am worried about taxes. I know that I should keep receipts for any company expense. Also I am aware to keep receipts for gas and supplies, since those are considered deductibles. One thing I am not sure of is how I should label my business initially. I'm debating between partnership and LLC. In my given circumstance, what would you start the business as? Paying as little taxes (hopefully getting some back) would definitely be my goal.
Also, how do I go about filing taxes? What forms do you fill out when you file your own small business taxes? I'm a bit confused about this. I mean, do you take a certain % of your profits each month and throw it in a separate account just so it can be taxed? I'm having a hard time finding good online resources about business taxes.
The last thing I want is to start a business, be doing okay, and come tax time get royally screwed out of money due to my ignorance.
Also, another thing that comes to mind is paying employees and their taxes as well. One day I'm sure we'll have enough clients to where we need more employees. Obviously they will have to submit a W-2 (unless contracted.) How do I deduct their taxes? When you work for a company, your check automatically takes taxes out. How does this work and how is it figured out how much is taken out? Is the money that is taxed go in a different bank account and tax season it's sent to uncle Sam? Or is it somehow automatically sent each check?
That's my goal. To start a good, honest, truthworthy and insured business and try to work my way up in this world. I know all businesses have risk, but I can minimize some by planning and researching. Another thing is investing back into the business. What % of your income do you guys invest back into the machine? My ultimate plan is to one day hire other employees, and eventually open another place (I definitely will not rush into this though.)
Are there any good resources for this kind of information? I really need to read up on paying business taxes, figure out what role my fiance will be and how she will be taxed, how to tax employees and figure it in my other taxes, how to pay employees for their work while deducting their taxes, how to label the business, etc.
If any of you guys could refer me to a good book, online website, video, anything that is relevant to what I'm looking for, I'd be more than happy! Hopefully in 2-3 months I will start this business. I just want to make 100% sure I have planned every avenue that I can think of, come up with a strategy, and everything else.
Thanks!
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