Soo, I hired an accountant. he spent an hour with me explaing what needs to be done in the state of Florida for my Limited Liability Corporation. i will be taxed as a Sole proprietorship. I have my EIN, and am filing online for my Sales Tax Exemption Certificate and that is all I need.
I will have an online retail business selling logo`d tshirts and other apparel items. By Christmas of 2007, I will also sell/manufacture an outdoor water resistant blanket. I source the fabric, notions etc. the sewing contractor produces, I ship it.
I am keeping every single receipt, for shipping prototypes to the sewing contractor etc. along with my fabric purchases, notions etc.
I am also hiring a web designer and programmer. I will be using Quickbooks Pro for bookkeeping and inventory control.
I am scrimping on buying my inventory for apparel products, and my imported beach jewelry. Should I be? If i cut cost right now, is it worth it when tax season rolls around. He explained how I won`t make any money the 1st year and that is a good thing? Really? Maybe I am trying to understand something that requires a college degree, Thank God for accountants.
I didnt understand what is considered tax deductible.
My products I purchase, the screenprinting, my fabrics I purchase to make my products. Are services like, graphic design, web design and programming fees deductible?
that whole deductible expenses discussion just didn`t register as i was mentally overloaded at the time.
is there a book or website that can explain all of this?
Thank you glgcpa
Thank you glgcap -I am going to read the irs site right now, yee ha that should be fun. My accountant did tell me he likes Quickbooks Pro, but did not state if this also applies to keeping track of inventory. I just left him a message to call me on Monday.
Thank you pipertax I am reading thru your website also.
The terms i was looking for was `ordinay` and `necessar` it is making more sense now.
CraigL...Now that makes sense and spoke right to my core problem.
I am going to invest in my initial products in small amounts and build up my customer base slowly. I am very money smart in my personal life because I `live below my means` and will carry that on over to the business. That is what works best for me and my ability to stay one step ahead of the men in white coats!
one more decision accomplished and understood. 1000`s to go.