Started an small business with a friend of mine. LLC. Have a license, tax id, business bank account, etc. However I’m not sure how to keep the books. How do we keep track of our transactions? Do we just get quickbooks or something and that explains everything?
What about filing taxes? We got the business registered in December, but as of now we’re just buying inventory so we haven’t really made any profit yet. Do we need to file taxes for this year?
We’re buying vehicles through a dealer and just paying them a commission per vehicle. Is this legal?
Can we claim only cars that we resell, as they will be retitled etc. or can we only claim cars we part out?
Hire a CPA to do everything. Its cheaper than you think. My dad has a painting business, he has an excellent CPA that takes care of everything… Plus you get to write off his expense…
CPA is a good thing to have, but worthless if you dont keep good records. If your paying out over $600 to someone, I would highly suggest giving them a 1099 at the end of the year so you can write their income off.
I’m self employed, if you need specifics send me a PM.
Quick books has great tutorials. However the best advice I ever received was from Jon Bottoms father Jack.
Get a good accountant, lawyer and banker. Ones you can develop solid relationships with. Odds are between these people in your corner you will have most of the advice you need.
We are in the process of opening a small business that caters exactly to what the OP is inquiring about; payroll, taxes and other various responsibilities that business owners typically don’t have the time/patience to deal with. Good advice in this thread so far.
As stated above, definitely get quickbooks and find a cpa that understands it inside and out. Also, said cpa should be able to help you with the tax questions too.
