andydufrane
Wed 8th Apr 2009, 15:43
Hello all,
I am new here, first time poster. I need some help, I have a very small business that I do in my spare time from my garage at home. I make a particular automotive item from scratch using parts that I purchase out of state. The business makes about $2000 a year in gross income. Off of that I net about $1200. For the first two years I took all that money and put it back into the business, buying tools and parts. I have never filed income for this business, not for 2007 or 2008. I have a full time job and pay income tax jointly with my wife who also works. The business has never been something that we include in any of our personal taxes. I filed a DBA business name with the county and put up a website. I have a sales tax use permit so that I could get an account with a good parts wholesaler. They have my tax id # on file and they do not charge me tax on my parts, whether that is due to me being out of state or the fact that I have a tax id # I am unsure. I only sell to "dealers" who in turn mark my product up and then charge tax to the end consumer. However, I file my quarterly sales tax report religiously and never have anything to put down but zero. The county has been sending me a form every year that I fill out detailing all my property that I use for the business (About $500). Then I pay tax on that yearly which is not much.
Ok! on to the question. Should I close my business and just operate it as a hobby? The only reason that I got a tax use permit was so that I could get an account with this big parts wholesaler, who would not sell to me otherwise. Thanks in advance for any advice.
I am new here, first time poster. I need some help, I have a very small business that I do in my spare time from my garage at home. I make a particular automotive item from scratch using parts that I purchase out of state. The business makes about $2000 a year in gross income. Off of that I net about $1200. For the first two years I took all that money and put it back into the business, buying tools and parts. I have never filed income for this business, not for 2007 or 2008. I have a full time job and pay income tax jointly with my wife who also works. The business has never been something that we include in any of our personal taxes. I filed a DBA business name with the county and put up a website. I have a sales tax use permit so that I could get an account with a good parts wholesaler. They have my tax id # on file and they do not charge me tax on my parts, whether that is due to me being out of state or the fact that I have a tax id # I am unsure. I only sell to "dealers" who in turn mark my product up and then charge tax to the end consumer. However, I file my quarterly sales tax report religiously and never have anything to put down but zero. The county has been sending me a form every year that I fill out detailing all my property that I use for the business (About $500). Then I pay tax on that yearly which is not much.
Ok! on to the question. Should I close my business and just operate it as a hobby? The only reason that I got a tax use permit was so that I could get an account with this big parts wholesaler, who would not sell to me otherwise. Thanks in advance for any advice.