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coffee
11-07-2011, 11:48 AM
Since Im trying to start a business I have to admit Iam pretty weak on the financial side of things. But learning all the time. A question has been rolling around in my head and wanted to get others opinion on it.

Has anyone figured out what percentage they pay in taxes? For instance, If you charge 80 dollars an hour what percentage goes to taxes on a quarterly basis?

I want to also say that Im really enjoying the great reading here in the message bases. I also appreciate everyones advice greatly. I soak it up daily!

thanks!

pceinc
11-07-2011, 12:35 PM
Impossible to answer. The amount you pay in taxes depends on many factors. Your income, the amount of expenses you have at the end of the year, depreciation of assets, number of dependents, and the structure of your business. Best to ask an accountant. They will be able to give you estimates based on the above.

dgast
11-07-2011, 01:13 PM
I found the best way at least for me was to set up my books keeping everything business seperated from my personal finances. Then run your profit/loss report at the end of the quarter. If you have a profit extend that out to year end and pay tax accordingly, just make sure your not behind more than 8-10% at year end or you'll pay a penalty. The forms are available online to do the estimate. Check out this for more information http://taxes.about.com/od/taxplanning/ht/estimated_taxes.htm There is a lot on this out there. With Quickbooks and Turbo Tax it is easy to do the year end taxes. At some point you'll need an accountant though.

NWPhotog
11-07-2011, 01:38 PM
Since Im trying to start a business I have to admit Iam pretty weak on the financial side of things. But learning all the time. A question has been rolling around in my head and wanted to get others opinion on it.

Has anyone figured out what percentage they pay in taxes? For instance, If you charge 80 dollars an hour what percentage goes to taxes on a quarterly basis?

I want to also say that Im really enjoying the great reading here in the message bases. I also appreciate everyones advice greatly. I soak it up daily!

thanks!

For me it works out roughly to 35% for Federal taxes and another 7-8% for State income taxes.

coffee
11-07-2011, 03:03 PM
Thanks everyone for replying.

Thanks for all the great advice too!

RichmondTech
11-07-2011, 03:21 PM
Since Im trying to start a business I have to admit Iam pretty weak on the financial side of things. But learning all the time. A question has been rolling around in my head and wanted to get others opinion on it.

Has anyone figured out what percentage they pay in taxes? For instance, If you charge 80 dollars an hour what percentage goes to taxes on a quarterly basis?

I want to also say that Im really enjoying the great reading here in the message bases. I also appreciate everyones advice greatly. I soak it up daily!

thanks!

Like the others have stated, only time and your accountant will get the number that works for you. Pick a number (we started with 20% of all labor dollars) and after the first quarter you will know if that number needs to go up or down.