Running a new business on my own. Need advice

lavendercowbaby

New member
Hello everyone and thank you for reading my post.

I have been getting tax returns for the last 10 years since my employer was always doing the withholdings so I would receive a check.

However in the last 16 months or so I have been working from home running my own retail business.


i have registered the LLC and I am wondering what I need to do to pay sales tax for items that were sold in the same state?
will I get penalties for not charging the customer's tax? I
s it possible to pay back the taxes over time?
Will the IRS seize my business bank accounts and force me to pay everything in full? What is the best course of action for me to take to avoid disrupting my business and making the financials unmanageable? I really need help on this so any ideas would be greatly appreciated. :D

Thank you and greetings from Alabama
 

rajneet

Company Director, EA
Staff member
Hello everyone and thank you for reading my post.

I have been getting tax returns for the last 10 years since my employer was always doing the withholdings so I would receive a check.

However in the last 16 months or so I have been working from home running my own retail business.


i have registered the LLC and I am wondering what I need to do to pay sales tax for items that were sold in the same state?
will I get penalties for not charging the customer's tax? I
s it possible to pay back the taxes over time?
Will the IRS seize my business bank accounts and force me to pay everything in full? What is the best course of action for me to take to avoid disrupting my business and making the financials unmanageable? I really need help on this so any ideas would be greatly appreciated. :D

Thank you and greetings from Alabama
Since you are working from home, you need to make sure that you make Estimated Tax Deposit payments (ETD).

ETD payments are made every quarter. You should register yourself at efpts.gov and make your estimated tax payments online so you have easier records available of what you paid to the IRS

ETD payments are a version of you pre-paying your tax during the calendar year so when you file your tax returns, you will not have a balance due. I recommend my clients to make monthly ETD payments. When making ETD payments, make sure to pick 2020 for tax year otherwise the amount might get applied to the oldest tax year with a balance due if you have a balance due with the IRS.

If you owe money to the IRS, they will not seize your account without issuing you a final notice but yes, they can issue bank levies if the balance goes unpaid with the IRS.
 

jakeNrake

New member
just based on my own experience, the IRS wont just seize the assets without warning because you made a mistake here or there. You really have to "be negligent" and ignore several notices from them or directly go against what they are telling you to do.

Basically, don't get a settlement setup and then violate the terms by not paying right away. That would be grounds for getting your accounts seized.

Just my 0.02 $, I'm definitely no expert here
 

TaxTest123

New member
I think you know that not avoiding sales tax in any business, licensed or unlicensed is a bad idea. Sounds like you need a personal finance manager and not to sound offensive, but you could use some education like business 101 classes. I took 3 years at a community college in Colorado and now I have 5 companies all doing well since I figured out what I was doing wrong in the early days.

Long story short, always collect and pay your local state and federal taxes for any registered LLC!!!! Let's say you're not charging sales tax and submitting transaction or balance sheet information to the IRS for 1-2 years while contradicting yourself in documents that you agreed under the penalty of perjury to report AND submit the required tax. Go hire a tax attorney, im sure the admin @rajneet can point you in the right direction.

Best of luck to you and stay safe,
Test
 

admin

Administrator
Staff member
I think you know that not avoiding sales tax in any business, licensed or unlicensed is a bad idea. Sounds like you need a personal finance manager and not to sound offensive, but you could use some education like business 101 classes. I took 3 years at a community college in Colorado and now I have 5 companies all doing well since I figured out what I was doing wrong in the early days.

Long story short, always collect and pay your local state and federal taxes for any registered LLC!!!! Let's say you're not charging sales tax and submitting transaction or balance sheet information to the IRS for 1-2 years while contradicting yourself in documents that you agreed under the penalty of perjury to report AND submit the required tax. Go hire a tax attorney, im sure the admin @rajneet can point you in the right direction.

Best of luck to you and stay safe,
Test
Hi @TaxTest123 Thank you for participating on our forum. Keep in mind that this is a friendly, inclusive community for everyone. With that being said, please be mindful of your tone when posting. We want to make sure everyone feels welcome here-- not just the Tax/Business pros! ;)
 

TaxTest123

New member
Sorry I didn't mean to break the rules, I just dont see the forum rules posted anywhere. Maybe a link would help?
 
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