Archive for April 14th, 2008
When To Save For Paying Taxes
14 April 2008I know I have mentioned Taxes a ton lately, but I am learning as I go along and want others to be better prepared from what I have gone through. I really thought that I wouldn’t have to pay taxes because I always get a big rebate for being the head of house and a mother. Last year I think was the last of me getting rebates. I only had three months of Massage business. This year it was a full year of being a sole proprietor that made a difference, now I must pay.
I have learned two things. 1) It is very beneficial to have a savings account with 20% of your income to pay for taxes. 2) Buying equipment or having business expenses to off set the business taxes is very necessary.
Yes, I would recommend having a business account separate from personal. Always put your purchases on your credit card so you have clear statements and keep your receipts to attach to them. Pay off your business credit card every month, if you can’t afford it wait until you can.
I have never checked into a business loan, but that might be a great way to go as well, I don’t know. What’s some other important input I am missing? Let Me Know.