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On Wed, 08 Dec 2004 13:50:03 -0600, Michele Davis <michele -at- krautgrrl -dot- com> wrote:
> [Y]ou should really speak to an accountant. We can't tell you what to
> do---we don't know your goals, expenses, if you work onsite, or off,
> what your deductions are, etc.
>
> Get thee to a knowledgeable CPA.
Can't reinforce Michele's point strongly enough. A good CPA who works
with small businesses/independent contractors is worth his or her
weight in gold, and even if you pay a few hundred dollars for his or
her time you will in all likelihood come out way ahead. Especially
during your first year, you'll want someone to call for advice when
you're planning for and paying quarterly estimated taxes, etc. Plus,
a good local CPA is going to know about a lot of issues that we on the
list simply don't... it was my CPA, for instance, who introduced me to
New York City's utterly delightful Unincorporated Business Tax and
then to the wonders of incorporation. (sigh)
Also ask your CPA for advice about good software to use to track
expenses, produce invoices, etc. When I was working as a contractor,
I used (and was quite happy with) a high-end version of Quicken, but
I'm sure there are many other worthy contenders.
Anyway, use *something*. Tracking your business-related bills and
expenses is key, and if you do it intelligently it makes tax time a
total snap (print out records, gather receipts, take everything to
accountant.)
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