What state are you in?

It’s the businesses responsibility, if they only accept cash. Slightly the customer’s responsibility if the business has other payment methods.

What will happen to the items you used the 179 exclusion on? Are the being sold? Used? Stored?

Are you in the US? Are you asking about how to get loans? Software can’t fix credit.

Is your business set up as a S Corp?

https://www.irs.gov/forms-pubs/about-form-w-9

Yes, this is normal. They need the info to comply with their reporting requirements.

You might get a 1099 form from them after years end. You are already reporting the income on your taxes anyway, so it’s not a big deal.

Your dad does not have higher tax liability if you go as a contractor. he just deducts your pay as an expense. The government will get less of the money, overall, if you work as a contractor.

Your drive to the office will not be a deductible expense. I see you mentioned that elsewhere. The drive to you first work location of the day, and home after, is considered personal.

No, am S Corp isn’t a good move here.

For the lowest overall taxes, between him and you, 1099 contractor is the way to go. It’s less taxes than if you are an employee (QBI deduction, no unemployment or workers comp).

Ah, so your business has no profits at year end? All profits are being paid as salary or put into the 401k?

In that case, you’ll be fine with withholding as long as you set up the 2% shareholder health insurance properly in Gusto. It will exclude it for fica. Then add the adjustment to other deductions on your w4.

If you set it up this way in Gusto, it will take care of this pre paycheck; not withholding any fica taxes on the wages. This is the best option.

https://www.thedancingaccountant.com/?p=3911

I stand corrected.

To adjust your withholding for the fica side, you would add an amount in section 3 that equals your anulized fica tax over payment.

How are you handling the withholding on your business profits though? You could just reduce your estimated tax payments on your profits by that amount.

You add the health insurance amount as “other deductions” on the w4.

This ignores it for income tax. It doesn’t ignore it from fica taxes, as you really do still pay fica taxes on this income. It’s only deducted before figuring income tax on the 1040.

Yes, that’s why it often gets missed. To the IRS it is debt costs, not vehicle expenses. So it’s still deductible.

One item people are prone to missing is that even if you use the per mile rate for vehicle expenses, you can still deduct a prorated portion of your car loan interest.

Otherwise it really depends on your line of work, the same things are not deductible for all types of business. Farming has a lot of treatments that are different than renting out properties, or running a restaurant, or offering child care in your home.

There is no federal small business tax.

There is social security and Medicare taxes on earned income, in addition to income tax. W2 worker or self employed, the income is subject to these taxes. When you are a s2 employee your employer pays half. When you are self employed, you pay both halves. This is effectively 14.4%. Then in addition to that you pay whatever your effective federal and state income tax rates are.

The self employed person pays less tax overall, on a 1.00 of earned income, than the employer and employer together pay on a 1.00 of w2 income.

You will pay the same amount of tax on this income you earned regardless of if you leave it in the business bank account or transfer it to your personal account. It’s all your income, either way.

Would your rather spend 50k to reduce your taxes by 13k? Or, not spend the money and take home 37k after taxes? Is there anything you want for the business more than you want 37k in your pocket?

Are you aware that you don’t need the llc to be able to write off expenses?

The tax treatment is the same whether you use cash or loan.

The overall least out of pocket expenses are usually owning versus leasing.

Your overall out of pocket will go down with any method, over the sweet deal you had in the past, of being able to deduct the per mile rate of any business us of the vehicle you already had the carrying costs on already.

Do you have a sales tax number already? If not, that is what you need.
https://www.revenue.wi.gov/Pages/FAQS/pcs-seller.aspx

So you had about 80k of ebay fees, right?

By inventory, is that the cost of the items you sold? Or how much inventory you bought, even what didn’t sell?

Was the home office used exclusively for business?

The driving, what kind of driving was it?