Yard Sign

[Pounder]

George B

I hear you about all the taxes involved with running a one man shop, government sure wants their cut. When I opened my one man business I wanted to do everything "by the book" but quickly discovered the "book" was expensive. I agree I miss the good old days as well.

Great tip about the hardware stores, will give that a shot.

[leapinglizards]

Can you park near the road? Magnetic sign on car!

[Grey Drakkon]

Benefits to paying taxes though is you can claim things as business expenses, which is especially useful if you work at home. So advertising, heat, electricity (while you're working) all of that and way more can and should be deducted.That, and being able to buy wholesale so you don't pay taxes on that. http://www.sba.gov/ is a very good site for finding out what legal recourse you have for your business as well as solid information on running a small business.

[George B]

Where I am I still pay a tax on the raw materials I have shipped in from out of state and was told by the state that this is what must be done, on top of having to charge sales tax and then send it to bot the local and state agencies. I'm sure this is not how it is done in all states but here in Tennessee it is easier to pay it then deduct it and fight over it.

Unfortunately all those suppliers I buy from submit to the state all of my "non-taxed" purchases so there is no getting around it.

I am not an accountant so I just pay it and move on.

And the last time I deducted my shop and all the amenities on my taxes as a business deduction I was audited. Not once, but three years in a row. Everything was correct and no adjustments made by the IRS, just a day each year out my work week and a lot of hassle.

The first IRS auditor told me it was the "work at home deductions" that flagged me. stopped doing that four years ago and have not had a single audit.

Just my opinion based on my overtaxed experiences. And. I still miss the good old days.

[digdug18]

George,

You might consider getting an address for your garage, basement, etc. With a seperate mailbox number, its a loophole that alot of at home businesses take advantage of, that way. That way "the business" is renting the garage from you. So the IRS sees that your LLC is renting, making deductions on upkeep, etc on the space they are renting. It's how guys have FFL's for gunsmithing out of their houses.

The pain of it though, is that you have the charge "the business" a nonimal amount each month for rent, and show it being paid. Benefit being that it's a tax write off for the business, depending on how you write it off.

[Pounder]

Digdug18

Thanks for the tip I will research. I have lost faith in our government from the lowest level on up and like anything I can do to help myself, since they choose not too.

[NVLeatherWorx]

Pounder! How can you say such a thing? Remember what our Procrastinator in Chief has said, "you didn't build that", and "you didn't make that". Well, I for one have had no assistance from anyone else so I would sure as hell like to meet whoever built my business and made my products without my knowledge.

Edited October 16, 2014 by NVLeatherWorx

[George B]

Good advice on the separate address and if I lived in the city, or at least not a electric coop it would work.

I looked into it with a separate meter when I built the shop/garage and the power coop needed a separate address for more than one meter at a location. The cost of the meter was more than I wanted to spend and the county really didn't see the need for a second address for a car garage.

I gave up.

[Pounder]

NVLeatherWorx

Love it.