Starting an Antiques and Collectibles Auction Business Sole-Proprietorship,chick here
Choosing a business structure is important. When you decide to start a business, it is one of the first things you need to do. It will dictate how you conduct business and it will also determine how you file your federal income tax returns with the IRS.
There are roughly six different options available to you. They are: limited partnership, general partnership,Nike Air Max 2011 Mesh Hvid Deep Blue Black, sole-proprietorship, limited liability company,Ny Nike Herre Shox R4 2011 Sort Grå Sko, corporation and S corporation.
For the most part, an auction house with a single owner and a single location are almost always set-up as a sole-proprietorship. In addition to being the easiest, it eliminates the expenses associated with forming a corporation. However,Herre Wholesale Online Nike Free Run 2 lyseblå orangerøde Sko, every rose has its thorn.
Under this business structure, the owner has unlimited liability for all debts associated with the auction house. This means that your personal assets are not protected. Should your auction business fail,Billige Online Herre Nike Free 3.0 v2 hvid rød sorte sko, your creditors can come after not just your business assets but your personal property as well.
When filing your tax returns, your business income,Mbt Pata Schwarze Schuhe Herren, along with any business losses, are reported on your individual tax return. It is added to any other earnings you may have including your spouse's, if you are married and filing jointly.
A number of sole-proprietors in the auction industry are actually husband and wife teams. If this is going to be the case with you,Nike Air Max 2011 Blå Læder Sko, you must pick either you or your spouse to be the official owner of record. The other person must be treated as an employee. The one selected to be the employee can have whatever title is necessary to show that he or she is in a position of authority.
The spouse that is the employee is paid a regular salary and therefore must have all applicable payroll taxes deducted from his or her paychecks.
The other spouse, the actual owner, cannot be paid a salary. However, this person can take a weekly,Nike Air Force 1 Low Lizard Sort Hvid Rød Sko, bi-weekly or monthly draw against profits. No taxes are to be deducted from such draws.
The business must make estimated tax deposits to the IRS each and every quarter. The amount of money you owe at the end of the year will be offset by these payments. It is up to you or your accountant to determine the appropriate amount to be deposited every three months. You will either owe money or be due a refund when it is time to file your tax return.
With a sole-proprietorship,Nike Zoom Kobe VI Sko Blå Hvid Sort, you do not have the same debt protection as you would if you were a corporation,Frauen MBT Laufschuhe Weiß Rosa, so you may want to seriously consider obtaining business liability insurance.相关的主题文章：
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