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Federal Taxes aren’t the only taxes?! B&O Explained.

Federal Taxes aren’t the only taxes?! B&O Explained.

At what point do I have to register my side business or freelance work? A business registration is a simple form to license your business with the state. Various states require this at different asset or income levels. Washington State does not have an income tax, but it does have Business & Opponency(B&O) tax along with Personal Property taxes. Step one is registering your business with the Department of Revenue(DOR). Yes, you need to register with the State of Washington, if any of the points apply to your business: Your business is required to collect sales tax Your gross income…
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I paid for someone to do my website – What do I do?

I paid for someone to do my website – What do I do?

How do I know if I need to report it? Alright if they aren’t an employee, and they are an independent contractor, yes you do have to report it if you meet certain thresholds. Was the amount over $600? Was the payment to an individual or an entity that is not incorporated? If you answered yes to the two questions about, then you need to file a 1099-Misc for the payment. To do that you need info from the person you pay. Usually, you collect this info before you pay the person via a W-9, but if you didn't you…
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I made some money, now what?

I made some money, now what?

Alright - so you are a freelancer, maybe working on the side, or a small business owner making some money, which is awesome. The downside is you need to pay taxes on that income, and you need to figure out what you owe. Do you need to make estimated tax payments? If you fall into both of the following categories you had better pay up: You are expecting to owe at least $1,000 or Your withholding will be less than: the smaller of 90% of your 2015 taxes or 100% of your 2014 taxes. I am not going to cover…
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