Is there such a thing a business account with a bank or federal credit that will automatically take your taxes out of the money you deposit?Im in the process of going legal with a landscaping lawn care service and i need to get more and better equipment, im trying to get a loan or some kind of assistence but i need to show proof of income. So i have to be paying in on my taxes and reporting. Everything. Frankly it confuses me to know end on what i... | |
usually they want 1 or 2 years of self employment tax returns to verify your income and ability to repay the loan. You should be keeping books and sending in quarterly estimated tax payments.
Go online and get a Schedule C, business profit/loss tax form. Look at the categories of expenses that you can deduct from income for tax purposes and to calculate net income that you pay taxes on. If you set up spreadsheets in the computer with these categories and put the amount spent-you need cancelled checks or credit card receipts. Take the net come for each quarter and use 2013 tax tables to estimate tax. you will also need to pay your own social security tax which for self employed is around 15%.
There is no way a bank can know how much tax you pay so they cannot take it out automatically.
