Just started a sole proprietorship

**MirashGojcaj** · 12-06-2011 06:44 PM

Hey Everyone,

Just last week I registered my Digital Marketing business as a sole proprietorship with the county clerks in the state of Michigan. I have a couple tax-related questions though...

Because I just started this company, I am not planning on doing much with it until the beginning of January 2012. Until then, I will be setting up my website, prices, etc. I plan on doing all of the work by myself (no employees). I also work a part time job and my employer pays half of the social security and medicare taxes and what not. If I am not planning on doing much with the business until January 2012, do I have to do anything differently with my taxes when I go to do my 2011 taxes?

Also- since this is a sole proprietorship and just something I am doing on the side since I already have a job, how should I take care of my taxes? How much should I save for taxes (percentage wise)? Should I worry about the quarterly estimated taxes? This is all pretty new to me at the moment...

I also wanted to mention that I will not have much of a start-up cost since I already have everything I need to conduct my business and I will be doing it from my home.

I was also planning on using a simple accounting program to make note of how much money I am making, spending, etc for tax purposes. Does anyone have any suggestions for a cheap, simple, cloud-based accounting solution? Something that might come with an iPhone app?

Kind Regards,
Mirash

**DigitalPalette** · 12-06-2011 08:08 PM

You may want to consult an accountant to make sure you do everything correctly.

**fthom** · 12-09-2011 04:05 AM

I would suggest you speak to an accountant too. Even if you might not need one for your accounts etc. it's good to speak to someone who knows what they are doing. They will be able to recommend how best you keep records etc.

There are lots of options for online accounting/bookkeeping out there - a quick google will give you a variety of options.