012. How Income Taxes Work for Boutique Owners

I truly believe that EVERY business owner’s least favorite part about running a business is taxes. But, it is a part of EVERY business, so, like it or not, you gotta have at least a very BASIC understanding of how taxes work for your business, so that’s what we’re going to be looking at today.

This episode is going to explain the basics of how income taxes work for Sole Proprietors, LLCs, S-Corps, and Partnerships so you can begin to understand how you file and pay taxes for your boutique business.

 

Ready to take your learning a step further?

Register for my Free Masterclass, Make Your Money Make Sense! Where you’ll learn how to understand where your money is going, avoid costly bookkeeping mistakes, and set up an easy to follow bookkeeping system.

Sign up now: www.findingfreedomfinancial.com/masterclass

 

Other Ways to Work With Me:

• If you’re ready to just hand the numbers off to someone so you can stay in your own zone of genius, apply for one of our open client spots so we can take it off your hands. Don’t worry, we’ll send you your financial reports each month so you can feel confident in your numbers without doing the work yourself. Apply now by booking a coffee chat consultation at www.findingfreedomfinancial.com/contact
• Need some guidance on how to do you own bookkeeping in Quickbook Online? Then check out Bookkeeping Made Simple for Boutiques, our signature course that walks you through the exact setup & process you need to implement for accurate and EASY bookkeeping all year long - no more tax time scramble! Enroll at www.findingfreedomfinancial.com/bookkeeping-basics
• Are you a Shopify seller who’s not quite ready to invest in a bookkeeping software like Quickbooks? Don’t worry - I got you! I’ve created a custom Shopify Seller Income & Expense Tracker that you can use to easily enter each transaction coming in and out of your business, along with your sales data coming directly from Shopify to put together a standard P&L (Income Statement) that you can hand over to your tax preparer. Download your copy at www.findingfreedomfinancial.com/income-expense-spreadsheet

 

Prefer to learn while you read? Check out the blog post for this episode:

https://www.findingfreedomfinancial.com/how-income-taxes-work

 

Related Episodes & Resources Mentioned:

• Here’s an blank copy of what a schedule C looks like that’s a part of your personal income tax return for Sole Proprietors and LLC Business Owners: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
• Download your own boutique-friendly list of deductible expenses for your boutique: http://findingfreedomfinancial.com/deductions/
• Tax Benefits of Becoming an S Corp: http://findingfreedomfinancial.com/s-corp-structure-benefits/
• Here’s an blank copy of what a Tax Return 1120-S looks like that S-Corp Businesses will need to file each year: https://www.irs.gov/pub/irs-pdf/f1120s.pdf
• Here’s an blank copy of what a Tax Return 1065 looks like that Partnership businesses will need to file each year: https://www.irs.gov/pub/irs-pdf/f1065.pdf