Go Back   WAHM Forums - WAHM.com > >

Welcome to the WAHM Forums - WAHM.com.

Welcome to WAHM Forums

Already registered? Login above 

OR

To take advantage of all the site's features, become a member of the largest community of Work-At-Home Moms.

The advertising to the left will not show if you are a registered user.


Reply
 
Thread Tools Search this Thread
  #1 (permalink)  
Old 07-11-2011, 02:07 PM
Registered WAHM
Thread Starter
 
Join Date: Jun 2011
Posts: 7
Default Issues holding me back...

Ok, I've been thinking about signing up to be a ABO for Xpress Healthcare, but I feel like some issues are overwhelming me. This would be my first home based small business, so I've been trying to do my research. Big issues like taxes, business license seem overwhelming. Do you have to register and get a business license to be a ABO in your state or local community or both? What about state and local taxes being an ABO? What about state sale taxes? Do you file quarterly state and local taxes as well as quarterly federal taxes? If I understand correctly, you'll file a quarterly federal 1040ES if you are planing on paying $1,000 or more in taxes that year and you would pay that via EFTPS system. And at the end of your tax year, you'd file your personal 1040 along with Schedule C and Schedule SE. Is that correct?

Also, what accounting software are you guys using? Quicken Home and Business or Quickbooks? etc. Just wondering what is working for your guys.

The tax and business license issues are what's holding me back. I want to get a good foundation set, before I jump in. How are other ABO's dealing with these issues? Did you just hire accountants and lawyers? Or do you have a degree in business? Just wondering how you guys dealt with these issues and what you did to resolve them. I want to have a good idea of how to proceed before starting as a ABO.
Reply With Quote
Sponsored Links
  #2 (permalink)  
Old 07-11-2011, 03:08 PM
Mike McClurg's Avatar
WAHM Fanatic
 
Join Date: Oct 2009
Location: Tulsa Okla
Posts: 1,364
Default

Hi rino39

I'm sending you a PM

Mike
Reply With Quote
  #3 (permalink)  
Old 07-11-2011, 03:46 PM
Mike McClurg's Avatar
WAHM Fanatic
 
Join Date: Oct 2009
Location: Tulsa Okla
Posts: 1,364
Default

No business licence is required.
and you file a 1099 at tax time.
Reply With Quote
  #4 (permalink)  
Old 07-11-2011, 04:26 PM
81charduck's Avatar
WAHM Addict
 
Join Date: Mar 2010
Location: CA
Posts: 3,434
Default

I'm glad you're looking in our direction. I've been with Xpress for a few months now, and I love it!

You may want to double-check in your county/state, but I've never heard of anyone needing a business license. Most areas require it if you have customers coming & going from your home, which will not be the case here. Also, we do not sell insurance, so you don't have to be licensed for that either.

Regarding taxes, you'll receive a 1099 at the end of the year, since you won't be employed by Xpress. Be sure to keep careful records, because you can deduct SO much that you may not pay any taxes. I've had a home business for several years, and I get money back. I never pay anything.

I personally use Quicken for my records. I'm not very good at accounting, so I enter everything like it is a bank account. Income=deposits. Deductions for expenses, being sure to categorize them. That way at the end of the year, it really simplifies taxes.

The vast majority of us never had experience operating a business, home or otherwise. It really is not difficult. Your sponsor will help you, we have an ABO mentor who is wonderful & we have our corp support. The best of all, your back office, where all your records are automatically entered (enrollments, how much you've been paid, commission, etc.), contains dozens of audio & video training. You can almost learn the entire business from your back office.

We have so many fabulous ABO's... Of course, I'm partial, but I think my team is the best! lol Whoever you join with will help you every step of the way.

I wish you every success, and don't be afraid to ask many more questions as they arise, both before & after you join.

To Your Success!
Reply With Quote
  #5 (permalink)  
Old 07-11-2011, 08:31 PM
Registered WAHM
Thread Starter
 
Join Date: Jun 2011
Posts: 7
Default

Thanks guys. Ok, so if I understand correctly, at the end of the year, Xpress Healthcare will send me a form 1099-MISC stating how much they paid me over that past year as a independent consultant. And then I will file a 1040 along with Schedule C and Schedule SE, using the 1099-MISC form to complete the Schedule C part. Does that sound correct for the federal part? I guess I'll need to find out what state tax forms to fill out for self employment state taxes? Or would I just be paying state income tax? And what threshold would I have to reach in order to start paying quarterly estimated taxes?

Yeah Julie, that's how I plan on doing my bookkeeping. I'll just use a basic income and expenses type of record keeping and keep my receipts for the year.

Sorry for all the questions. I'm just a little paranoid about the tax issues, and wanted to make sure I knew what to do and how to be prepared before jumping in. I do my own basic personal taxes using Turbotax online, and would like to use Turbotax online to do the taxes for this situation as well.

I like the Xpress Healthcare plans, because they seem like a good alternative for those without insurance. I've been lurking on this forum, and doing research to try and learn as much as I could before making a decision.

Thanks for helping me.
Reply With Quote
  #6 (permalink)  
Old 07-12-2011, 12:25 PM
81charduck's Avatar
WAHM Addict
 
Join Date: Mar 2010
Location: CA
Posts: 3,434
Default

It sounds like you have the tax info about right. I'm looking at my 2010 taxes right now. For Federal, I submitted 1040, Schedule A, B, C, & Form 8829 (expenses for business use of your home, a huge deduction!)

For my State (which happens to be AZ), I submitted a 140 (AZ Income Tax Return form), and Schedule A (Itemized Deductions).

Since you said you planned to use Quicken in the same manner I do, I can tell you, it's no big deal. At the end of each year, I print out categorized reports from Quicken. I use than information to complete my tax forms.

I cannot stress enough how important it is to maintain CATEGORIZED records. If you do not, it turns an otherwise simple process into a very major process. Keep this message, and if you ever need help with that, I'll be glad to assist you.

You can deduct a portion of your mortgage or rent & your utilities. Each is based on the percentage of your home you use for an office. Say you use 15% of your house square footage for an office. That means you can deduct 15% of each of those items, which could be huge. I also deduct a portion of what I pay a housekeeper! She does clean my office. Of course, you'll also deduct costs directly associated with your business, (with Xpress) your monthly fee, business travel, brochures, biz cards, paper, etc.

Try not to "over think" the tax situation. It is not really complicated at all as long as you keep good records all year long. Even if you made NO $$, which would mean you're not working your biz, you'll still come out ahead tax-wise.

So, its time to get off the fence, select a sponsor, and start earning $$! You CAN do this!

To Your Success!
Reply With Quote
  #7 (permalink)  
Old 07-12-2011, 01:34 PM
Mike McClurg's Avatar
WAHM Fanatic
 
Join Date: Oct 2009
Location: Tulsa Okla
Posts: 1,364
Default

Yes, I agree with Julie sitting on the fence is not the place to be.

While I don't spend time trying to convince people.
for 7.70 you have nothing to lose and everything to gain.

I not only got off the fence But I knocked it down

I'm SOOOOO glad I did.

I don't regret it for one second .( wish I'd started sooner)

rhino39 neither will you.

chose your sponsor and start your future
Reply With Quote
  #8 (permalink)  
Old 07-12-2011, 02:33 PM
cruisin_man's Avatar
WAHM Regular
 
Join Date: Jul 2007
Location:
Posts: 43
Default

To receive proper answers to your tax questions you should seek the advice of a professional.

I know of several "netwokers" that have been audited in the past.

Last edited by cruisin_man; 07-12-2011 at 04:37 PM.
Reply With Quote
  #9 (permalink)  
Old 07-12-2011, 03:08 PM
Mike McClurg's Avatar
WAHM Fanatic
 
Join Date: Oct 2009
Location: Tulsa Okla
Posts: 1,364
Default

Tom,

for your info I directed her to some one that would have all the answers
she would need.

As usual giving your opinion How LONG HAS IT BEEN since you've actually been active in the industry ?
Oh Well,
thanks for your expertise

Last edited by Mike McClurg; 07-12-2011 at 03:20 PM.
Reply With Quote
  #10 (permalink)  
Old 07-12-2011, 05:09 PM
81charduck's Avatar
WAHM Addict
 
Join Date: Mar 2010
Location: CA
Posts: 3,434
Default

Tom, I agree with you. I stand by all my suggestions, however, I should have added that "tax situations are different for each of us; so check with a tax professional." Thanks for bringing that up.

Of course, anyone can be audited, so I imagine networkers could be subject to auditing as well. It is vital that all records are maintained and that all expenses are backed up with receipts, bills, etc. If you cheat, you are much more likely to be audited.
Reply With Quote
 
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off