Business Tax?

[GotJDM]

Hey guys I was wondering if any of you guys have some insight on when you would have to file for taxes if your a tackle business or a business in general? Is there a certain amount of money your business needs to make? Or does your business have to be an established trademark/ business? Or all of the above? I know im missing a lot of key points but if you could give me some info it would be great thanks. Sorry if this is off topic.. If it needs to be moved go for it.

*I forgot to add, do you need to pay back gamakatsu or owner for using their trademark and product? Such as jig hooks? Thanks...

[Jigfishn10]

I LLC'd in 2007 and S-Corp'd in 2008 and chose to pay quarterly taxes.

[FD.]

Chances are you are not actually making a profit and it would be classified as a "hobby" by the KGB I mean IRS.

 

I do about $750,000 a year in a construction business and I have to file with the IRS by March 15.  I have to file with the division of corporations, pay a county intangible tax and pay $400 a year in licensing just to be allowed to pay taxes.

[flyfisher]

I would suggest contacting an attorney who knows business law and/or a CPA with the same credentials.

[Mr. Bassin II]

I would suggest contacting an attorney who knows business law and/or a CPA with the same credentials.

 

 

As a licensed CPA, I cannot recommend what's mentioned above enough.  If you are indeed engaged in this activity with a profit motive, or if income was earned as a hobby, this will need to be reported by you.  How this is treated depends your situation and how the business is structured. Actually the IRS applies an activity test to determine if a venture is a hobby or business so it is important to file based their guidelines. 

 

Working with a professional will ensure you are reporting correctly this thus avoiding costly penalties and fines.  Also, a CPA in your area should have extensive of state and local taxes as well, which are just as important to do correctly as federal.

 

Concerning the use of trademarks and copyrighted material, it is best practices to get express written permission before using such material.  Purchasing material from a manufacturer to use in your product typically does not present a problem though.

[Delaware Valley Tackle]

As a licensed CPA, I cannot recommend what's mentioned above enough.  If you are indeed engaged in this activity with a profit motive, or if income was earned as a hobby, this will need to be reported by you.  How this is treated depends your situation and how the business is structured. Actually the IRS applies an activity test to determine if a venture is a hobby or business so it is important to file based their guidelines. 

 

Working with a professional will ensure you are reporting correctly this thus avoiding costly penalties and fines.  Also, a CPA in your area should have extensive of state and local taxes as well, which are just as important to do correctly as federal.

 

Concerning the use of trademarks and copyrighted material, it is best practices to get express written permission before using such material.  Purchasing material from a manufacturer to use in your product typically does not present a problem though.

X2 Your state tax dept. likely has some info on their site as to what's needed to start a small business but there's no replacement for professional advice.

[jhoffman]

I wouldnt even get into it without an accountant because frankly its a nightmare in my opinion. You want to just have someone tell you what you owe, thats why they went to school because it is nothing but a massive headache.

[papajoe222]

I went into business for myself about four years ago and I will echo the sentiments of those that recommend professional help.  I've been doing my own tax filing and don't recommend it.

If your tackle 'business' is done online, DON'T assume anything. Get help.

BTW, You do not need to pay royalties to a company when selling their products, but before using their logo for advertisement, it's advisable to get written permission.

[ClearCreek]

Remember that if you are in the fishing tackle manufacturing and selling business you will also be responsible for Federal excise taxes.  Google "federal excise taxes on fishing equipment" for an explanation. 

 

ClearCreek